Gratuity Calculator

Calculate gratuity amount based on salary and years of service

Enter Details

Provide your salary and service duration to calculate gratuity

Basic salary + Dearness Allowance (DA)

Most private sector employees are covered under the Act

Quick Examples

About Gratuity

💰 What is Gratuity?

A lump sum payment made by employer to employee as a token of appreciation for services rendered

📋 Eligibility

Minimum 5 years of continuous service (except death/disability)

🏢 Coverage

Applies to organizations with 10+ employees

💵 Payment

Must be paid within 30 days of becoming due

Formula Explained

Covered Employees (26 days):

(Salary × 15 × Years) / 26

Not Covered (30 days):

(Salary × 15 × Years) / 30

📌 Note:

Salary = Basic + DA (Dearness Allowance)

Tax Information

✅ Tax-free up to ₹20 lakhs for private sector employees

✅ Fully tax-free for government employees

⚠️ Amount exceeding ₹20 lakhs is taxable