Gratuity Calculator
Calculate your gratuity amount as per the Payment of Gratuity Act โ including the tax-exempt limit.
Enter Your Numbers
How this calculator works
Gratuity is a lump sum paid by an employer to an employee as a token of appreciation for their long service. Under the Payment of Gratuity Act, 1972, you are eligible if you have completed 5 or more years of continuous service. For covered employers (10+ employees), the formula is: Last Basic+DA ร 15/26 ร Years of service. The first โน20 lakh is fully tax-exempt. Non-covered employers use a slightly different formula (15/30 instead of 15/26).
Gratuity (covered) = Last Basic salary ร 15/26 ร Completed years | Gratuity (non-covered) = Last salary ร 15 ร years รท 30 | Tax-exempt limit: โน20 lakh
Last updated: March 2026 ยท Rates and slabs updated for FY 2025-26
6 months rounds up to 1 year
If you've completed 5 years and 7 months, it counts as 6 years for gratuity calculation. Less than 6 months is rounded down.
โน20 lakh is tax-free
Gratuity up to โน20 lakh is fully exempt from income tax under Section 10(10). If you receive more, only the excess is taxable as salary.
Nominate a family member
Always file a gratuity nomination form with HR. In case of your death, the nominee receives the gratuity without legal hassle.
Frequently Asked Questions
If you've completed 5 years and 7 months, it counts as 6 years for gratuity calculation. Less than 6 months is rounded down.
Gratuity up to โน20 lakh is fully exempt from income tax under Section 10(10). If you receive more, only the excess is taxable as salary.
Always file a gratuity nomination form with HR. In case of your death, the nominee receives the gratuity without legal hassle.