Gratuity Calculator (India)
Calculate gratuity payout under the Payment of Gratuity Act, 1972
Min 5 years required for eligibility
Tenure:
Gratuity Calculation
Total Gratuity Payable
₹2,76,923
100% Tax-Free (Below ₹20L Limit)
Formula Used:(15 × 60,000 × 8) / 26
Tax-Free Exemption Limit:₹20,00,000
Taxable Gratuity Portion:₹0
Frequently Asked Questions
For employees covered under the Payment of Gratuity Act, 1972:
Gratuity = (15 × Last Drawn Basic Salary + DA × Years of Service) / 26.
An employee is eligible for gratuity after completing a minimum of 5 continuous years of service with the same employer (except in cases of death or disablement).
Under current Income Tax rules, gratuity received up to ₹20,00,000 (₹20 Lakhs) is completely exempt from income tax.