Gratuity Calculator India
As per the Payment of Gratuity Act, 1972. Includes eligibility check, accurate formula and tax treatment.
Formula: Gratuity = (Basic + DA) × 15 × Years ÷ 26. ≥ 6 months counts as a full year.
Understanding gratuity
Employees who complete 5 years of continuous service. Death or disability waives the 5-year requirement.
Up to ₹20 lakh tax-free under Section 10(10). Amount above is taxed as salary.
Within 30 days of last working day. Delayed payment attracts simple interest.
Last drawn Basic + Dearness Allowance. Excludes HRA, bonus, allowances.
More than 6 months in the final year counts as a full year. Less than 6 months is ignored.
Can be forfeited fully if dismissed for proven moral turpitude. Partially for damages to employer.
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Frequently asked questions
Is gratuity taxable?+
Up to ₹20 lakh in a lifetime is tax-exempt for non-government employees under Section 10(10). Anything above is taxed as salary.
Do I get gratuity if I resign before 5 years?+
No—5 years of continuous service is mandatory, except in case of death or permanent disability.
What if my company has not registered for gratuity?+
The Payment of Gratuity Act applies to any establishment with 10+ employees. The employer is liable regardless of registration.
How is gratuity different from PF?+
PF is a monthly contribution by both employer and employee. Gratuity is paid entirely by employer at exit, after 5 years of service.
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