Gratuity Calculator

Calculate your gratuity amount based on years of service and last drawn salary. Know your retirement benefits.

Employment Details

Include Basic Salary + Dearness Allowance only

Your Gratuity Amount

Total Gratuity Amount

₹3.89 L

Calculation Details

Last Drawn Salary:₹75,000
Years Considered:9 years
Formula Used:(75,000 × 15 × 9) / 26

Tax-Free Amount

₹3.89 L

Taxable Amount

₹0

Tax Exemption

Gratuity up to ₹20 lakhs is tax-free under Section 10(10)

Gratuity Rules & Eligibility

Eligibility Criteria

  • • Minimum 5 years of continuous service required
  • • 4 years 6 months is rounded up to 5 years
  • • Applicable on resignation, retirement, or death
  • • Death/disability: No minimum service required

Gratuity Formula

  • • Covered: (Salary × 15 × Years) / 26
  • • Not Covered: (Salary × 15 × Years) / 30
  • • Salary = Basic + Dearness Allowance
  • • Maximum limit: ₹20 lakhs (tax-free)

Who is Covered?

  • • Factories with 10+ workers
  • • Shops/establishments with 10+ employees
  • • All central/state government employees
  • • Educational institutions

Forfeiture of Gratuity

  • • Termination for misconduct
  • • Causing damage to employer's property
  • • Moral turpitude offences
  • • Partial forfeiture for damage recovery

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