Gratuity Calculator India (2026)

Calculate gratuity amount for private and government employees. Includes tax exemption limit and eligibility check.

Quick Answer: Gratuity = (Last drawn Basic + DA) ร— 15 ร— Completed years / 26 (private) or /30 (government). Minimum 5 years continuous service required. Months โ‰ฅ 6 count as a full year. Tax exempt up to โ‚น20 lakh. Employer-funded, paid on resignation/retirement/death/disability.

Your Details

โœ… Eligible (7y 6m โ†’ 8 effective years)
GRATUITY AMOUNT
โ‚น2,30,769
For 8 years of service
Tax Treatment
Total Gratuityโ‚น2,30,769
Tax-Exempt (up to โ‚น20L)โ‚น2,30,769
Taxable Amountโ‚น0

Full gratuity is tax-free (within โ‚น20L exemption limit).

Formula Used
= (โ‚น50,000 ร— 15 ร— 8) รท 26
= โ‚น2,30,769

FAQs

What is the gratuity formula in India?

Gratuity = (Basic + DA per month) ร— 15 ร— Years of Service รท 26. For government employees the denominator is 30, not 26. Months โ‰ฅ 6 are rounded up to a full year.

What is the minimum service period for gratuity?

5 years of continuous service. However, if an employee dies or becomes disabled before 5 years, gratuity is still payable.

Is gratuity taxable in India?

Gratuity received on retirement, resignation, or superannuation is tax-exempt up to โ‚น20 lakh. Amount above โ‚น20L is taxable as salary income.

When must employer pay gratuity?

Gratuity must be paid within 30 days of it becoming payable. Failure attracts interest. The Payment of Gratuity Act 1972 governs this for establishments with 10+ employees.

Also try: In-Hand Salary Calculator ยท Employee Cost Calculator ยท Salary Slip Generator
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