Gratuity Calculator India 2024-25 — Free Online
Calculate gratuity amount using the Payment of Gratuity Act formula. Check eligibility, tax exemption (Section 10(10)), and get instant results for government and private employees.
Gratuity Calculator
Calculate your gratuity amount
Organizations with 10+ employees (formula uses 26 days)
Only basic + DA is considered for gratuity
Gratuity Amount
Total Gratuity
₹2,88,462
Last Drawn (Basic+DA)
₹50,000
Service Period
10 Years
Tax-Free (up to ₹20L)
₹2,88,462
Taxable Amount
₹0
Formula Used
(15 × ₹50,000 × 10) / 26
Eligibility Status
Eligible for Gratuity
You have completed 10 years of service. You are eligible for gratuity.
How Gratuity is Calculated in India
Gratuity is a lump-sum retirement benefit paid by the employer to an employee as a token of appreciation for long service. It is governed by the Payment of Gratuity Act, 1972.
Gratuity Formula
Covered under the Act (10+ employees):
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26
Not covered under the Act:
Gratuity = (15 × Last Drawn Salary × Years of Service) / 30
Eligibility Criteria
- Minimum 5 years of continuous service with the same employer.
- Exception: In case of death or disability, the 5-year rule is waived.
- If months of service in the last year are 7 or more, it rounds up to the next year.
Tax Treatment of Gratuity
- Government employees: Entire gratuity is tax-free.
- Private employees covered under the Act: Exempt up to ₹20 lakh (Section 10(10)).
- Last drawn salary includes Basic + Dearness Allowance only.
- 26 days in the formula represents working days in a month (excluding 4 Sundays).
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