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
IFSC Code Checker
Check if an IFSC is valid and whether it supports NEFT, RTGS, IMPS and UPI.
Cheque Amount in Words
Type an amount, get the exact words to write on your cheque (Lakh & Crore).
Loan EMI Calculator
Monthly EMI, total interest and a year-by-year repayment chart.
FD & RD Calculator
Maturity value of fixed and recurring deposits with quarterly compounding.