Gratuity Calculator
Calculate your gratuity amount as per Indian Gratuity Act provisions
📋 Gratuity Calculation Guide
✅ Gratuity Formula
Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26
- Last Drawn Salary: Basic + Dearness Allowance (not full CTC)
- 15: Days' salary for each completed year
- 26: Working days per month as per law
📅 Service Period Rules
- Minimum 5 years of service required
- If additional months ≥ 6 → Round up to next year
- If additional months < 6 → Ignore extra months
- Only completed years are counted
💰 Tax Information
Gratuity up to ₹20 lakhs is tax-exempt
Any amount above ₹20 lakhs is taxable as salary income
Gratuity up to ₹20 lakhs is tax-exempt
Any amount above ₹20 lakhs is taxable as salary income
💡 Example: Basic ₹40,000, DA ₹10,000, Service: 10 years 7 months
Calculation: ₹50,000 × 15 × 11 ÷ 26 = ₹3,17,308 (Service rounded up to 11 years as 7 months ≥ 6)
Calculation: ₹50,000 × 15 × 11 ÷ 26 = ₹3,17,308 (Service rounded up to 11 years as 7 months ≥ 6)
Salary & Service Details
Loading...
Calculating your gratuity...