Finance
Gratuity Calculator (India)
Gratuity is one of the most overlooked components of your final compensation. Enter your last drawn basic + DA and years of service to see your exact gratuity, with proper handling of the partial-year rounding rule and the ₹20 lakh statutory cap.
Gratuity payable
Service counted
10 years
Statutory cap
Within limit
Formula
(Last drawn basic+DA × 15 × completed years) / 26
Gratuity up to ₹20 lakh is tax-free for private-sector employees covered under the Act. Always confirm exact eligibility with HR.
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Frequently asked
- When am I eligible for gratuity?
- Typically after 5 continuous years of service with the same employer. Some recent rulings count 4 years 240+ days as eligible.
- Is gratuity taxable?
- Up to ₹20 lakh of gratuity is tax-exempt for private-sector employees covered under the Act. Anything above is taxed at slab.
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