• 22k Gold₹ 13,880/gm
  • Silver₹ 2,25,227/kg
  • Petrol₹ 115.69
  • Diesel₹ 104.23
  • LPG₹ 994.00
  • Crude Oil$ 109.86
  • USD₹ 95.08
  • Sensex74,729.27 ▲ +3.90%
  • Nifty23,146.15 ▲ +3.50%
Skip to content
Independent money journalism for Indian investors
Trending
Free calculator

Gratuity Calculator

What you receive when you leave after five years or more.

Gratuity payable
—
Tax-free portion
—
Taxable portion
—
Eligibility
—

Figures are estimates for planning only, not investment or tax advice.

Gratuity is a lump sum an employer pays for long service, normally after five continuous years. This calculator applies the statutory formula and shows how much of the payout is tax-free.

The formula

For employers covered by the Payment of Gratuity Act: Gratuity = 15 ÷ 26 × last drawn monthly salary × years of service, where salary is basic plus DA and any part-year over six months counts as a full year. For employers not covered, the fraction is 15 ÷ 30 and part-years are ignored.

Tax treatment

For private-sector employees the exemption is the least of the statutory formula amount, the actual gratuity received, and a lifetime ceiling of ₹20 lakh. Government employees receive gratuity entirely tax-free.

Frequently asked questions


Do I get gratuity before five years?

Only if service ends through death or disablement, in which case the five-year condition is waived.


Does 4 years and 8 months count as five?

Courts have held that it does where the employer is covered by the Act, since the final year exceeds six months.


Is the ₹20 lakh ceiling per employer?

No, it is a lifetime limit across all employers.


Related calculators

See all
Join our WhatsApp channel