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Gratuity Calculator

Calculate your gratuity amount based on your last drawn salary and years of service. Get accurate estimates of your end-of-service benefits as per the Payment of Gratuity Act, 1972.

End of Service Benefit
Minimum 5 Years Service Required

Gratuity Calculation Parameters

Salary Details
₹
₹50,000 per month
Service Details
Yrs
5 Years
Mths
Employment Type

Gratuity Calculation Formula

For Private Sector (Covered under Gratuity Act):

Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26

For Government Employees:

Gratuity = (Last Drawn Salary × Years of Service) ÷ 2

Note: Maximum gratuity limit is ₹20 lakhs as per current regulations.

Gratuity Calculation Results

Eligible for Gratuity
₹144,230
Calculated Gratuity Amount
₹144,230
Eligible Amount (After Limits)
5 yrs, 0 mths
Total Service
₹50,000
Last Drawn Salary
Private Sector (Covered under Gratuity Act)
Employee Type
₹20 Lakhs
Maximum Limit

Calculation Breakdown

(50,000 × 15 × 5.00) ÷ 26 = ₹144,231

Calculation Breakdown

(₹50,000 × 15 × 5) ÷ 26 = ₹1,44,230

Important Notes

  • Minimum 5 years of continuous service required
  • Gratuity is tax-free under Income Tax Act
  • Maximum limit: ₹20 lakhs (as per current rules)
  • Calculation based on last drawn salary

About Gratuity

Payment of Gratuity Act, 1972

Eligibility Criteria:

  • Employee must have completed minimum 5 years of continuous service
  • Applies to establishments with 10 or more employees
  • Payable on superannuation, retirement, resignation, or death

Key Features:

  • Tax-free benefit under Section 10(10) of Income Tax Act
  • Maximum ceiling of ₹20 lakhs
  • Compulsory for eligible organizations
  • Nomination facility available
Frequently Asked Questions

Q: What is the current gratuity limit?

A: The maximum gratuity amount is ₹20 lakhs as per the current regulations.

Q: Is gratuity taxable?

A: Gratuity received under the Payment of Gratuity Act is tax-free.

Q: Can I get gratuity if I resign?

A: Yes, if you have completed 5 years of continuous service.

Q: What if my organization is not covered under the Act?

A: You may still be eligible for gratuity as per your company's policy or employment contract.