Tax & SalaryFree Tool
Gratuity Calculator — Calculate Your Gratuity Amount
Calculate gratuity payable under the Payment of Gratuity Act based on your last drawn salary and years of service.
Gratuity is a lump-sum amount paid by an employer to an employee as a token of appreciation for services rendered. It is governed by the Payment of Gratuity Act, 1972. The act applies to factories, mines, oilfields, plantations, ports, railway companies, shops, and establishments with 10 or more employees.
The maximum tax-exempt gratuity amount was raised from ₹20 lakh to ₹25 lakh in the 2024 budget.
Formula & How It Works
Benefits of Using Gratuity Calculator
Know your exact gratuity entitlement before retirement or resignation.
Plan your exit finances by combining gratuity with other retirement benefits.
Understand tax implications — gratuity up to ₹25 lakh is tax-exempt.
Verify employer's gratuity calculation for accuracy.
Common Mistakes to Avoid
Not completing 5 years of service — you lose gratuity entitlement entirely.
Confusing total salary with Basic + DA — only Basic + DA is used for calculation.
Not knowing that years of service > 6 months are rounded up (4 years 7 months = 5 years).
Assuming gratuity is fully tax-free — amounts above ₹25 lakh are taxable.