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Gratuity Calculator (Indian Rules)
Determine your eligible gratuity payout according to the Payment of Gratuity Act, 1972, for covered and non-covered organizations.
Service & Salary Details
Monthly Basic Salary + DA (₹)₹50,000
Years of Service
Months of Service
Organization Category
Calculation Summary
Eligible for Gratuity
You meet the continuous service threshold of 5 years.
Estimated Gratuity Payable
₹0
Formula: (15 × Salary × Years) / 26
Last Drawn Monthly Salary:₹50,000
Actual Service Term:5 Years 6 Months
Effective Years (rounded):0 Years
Tax-Free Status:100% Tax Free
* Under Section 10(10) of the Income Tax Act, the tax-free gratuity cap is capped at ₹20 Lakhs for private employees. For Central Government employees, the statutory payout ceiling is ₹25 Lakhs (which was increased after Dearness Allowance hit 50%).
Complete Guide: How to Use the Gratuity Calculator
Calculate your gratuity entitlement under the Indian Payment of Gratuity Act 1972. Find out if you qualify, apply rounding rules for completed service terms, and calculate your exact pay structure.
Step-by-Step Instructions
- Input your Last Drawn monthly Basic Salary + Dearness Allowance (DA).
- Enter your length of continuous service in completed Years and remaining Months.
- Select your organization category: 'Covered under Gratuity Act' (common for companies with 10+ employees) or 'Not Covered'.
- Inspect the eligibility indicator to see if you meet the continuous service threshold.
- View the calculated gratuity payout, formula explanation, and tax-exempt information.
Key Features & Benefits
- Supports Covered Act (15/26 divisor) and Non-Covered Act (15/30 divisor) calculations.
- Applies the statutory nearest-year rounding rule automatically (e.g., 5.5 years rounds to 6 years for covered workers).
- Highlights the statutory 5-year eligibility conditions with interactive alerts.
- Displays detailed formulas, fractions, and intermediate calculations.
- References the ₹20 Lakhs tax exemption cap for private sector employees and the ₹25 Lakhs ceiling for government employees.
- Runs fully in-browser to protect your salary data.
FAQs about Gratuity Calculator
What is Gratuity in India?
Is Gratuity taxable in India?
Does the 5-year eligibility rule apply in all cases?
What is the difference between Covered and Non-Covered establishments?