Gratuity Calculator (India)

Calculate your loyalty benefit payout after completing 5+ years of service.

₹

Note: Any period above 6 months counts as a full year.

Gratuity Amount
₹0

Formula: (15 * Last Basic * Tenure) / 26

What is Gratuity?

Gratuity is a statutory benefit paid by an employer to an employee as a token of appreciation for their long and meritorious service. In India, it is governed by the Payment of Gratuity Act, 1972.

Eligibility Criteria

  • Completion of at least 5 years of continuous service with the same employer.
  • Applicable to establishments with 10 or more employees.
  • The 5-year rule is waived in case of death or disablement of the employee.

FAQs

Is Gratuity taxable?

For non-government employees, gratuity is exempt from tax up to a maximum limit of ₹20 Lakhs in a lifetime.

How is Tenure rounded?

If you work for 5 years and 7 months, it is rounded to 6 years. If you work for 5 years and 5 months, it is considered 5 years.