Gratuity Calculator
Calculate gratuity amount under the Payment of Gratuity Act, 1972.
Share:
₹1,000₹5,00,000
yrs
mo
Covered under Gratuity Act
Total Gratuity Payable
₹2,88,462
Tax Exempt
₹2,88,462
Taxable Portion
₹0
Calculation Details
Formula Used(Basic × 15 × Years) / 26
Years of Service (rounded)10 years
Under the Payment of Gratuity Act, gratuity is payable after 5 years of continuous service. The lifetime tax exemption limit is ₹20,00,000. The tax-exempt portion could save you approximately ₹86,539 in taxes (at 30% bracket).
How is this calculated?
Under Gratuity Act: Gratuity = (Last drawn salary × 15 × Years of service) / 26. For non-Act employees: (Salary × 15 × Years) / 30. Service > 6 months in a year rounds up. Tax exemption is the lower of: actual gratuity, ₹20L, or formula-calculated amount.