Gratuity Calculator: Formula, Eligibility and Tax-Free Limit
Calculate gratuity from last drawn salary and years of service with the 15/26 formula and the ₹20 lakh cap.
Gratuity Calculator
Indicative estimate. Verify with official sources.
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Formula
Covered employees: Gratuity = last drawn monthly salary (basic + DA) × 15 ÷ 26 × completed years of service (more than 6 months in the last year counts as a full year). Not covered: monthly salary × 15 ÷ 30 × years. Statutory cap ₹20 lakh.
Eligibility
Generally 5 years of continuous service, except death or disablement. Verify against the latest labour-code rules and your employer policy.
Gratuity Calculator FAQs
How many years are required for gratuity?
Five years of continuous service, with exceptions for death or disablement.
Is gratuity taxable?
Gratuity received by private-sector employees is exempt up to the lowest of statutory limits; any excess is taxable as salary.
What is the maximum gratuity?
₹20 lakh under the Payment of Gratuity Act.
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