Gratuity Calculator

Gratuity under the Payment of Gratuity Act.

Gratuity amount

₹2,88,462

Tax-free limit

₹20,00,000

Formula value

₹2,88,462

Formula

Gratuity = Last basic+DA × 15 × years of service ÷ 26. Service of 6 months or more in the last year is rounded up.

Eligibility

You need at least 5 years of continuous service with the same employer (except in case of death or disability). The maximum under the Act is ₹20 lakh.

Frequently asked questions

Is gratuity taxable?

Up to ₹20 lakh is tax-free for private employees covered by the Act; government employees' gratuity is fully exempt.

Related tax tools

Results are estimates for planning only. Confirm final figures with your bank or a tax advisor.

Free banking tools