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Gratuity Calculator (2026) - Calculate Gratuity Amount & Tax Exemption

Calculate statutory gratuity payout under the Payment of Gratuity Act 1972. Check ₹20 Lakh tax exemption limit, 5-year eligibility, and formula.

Salary & Service Details

₹50,000
Government EmployeeCentral / State Govt employees enjoy 100% tax-free gratuity
🏆 Total Gratuity Payable

₹2,30,769

Based on 8 years effective service ((15 × ₹50,000 × 8 yrs) ÷ 26)

Tax-Exempt Portion

₹2,30,769

Section 10(10) Max ₹20L

Taxable Portion

₹0

Taxed at slab rate

✅ Continuous Service Criteria Met

You have satisfied the 5-year continuous service rule under Section 4(1) of the Payment of Gratuity Act 1972 and are entitled to full settlement upon departure.

Free Gratuity Calculator - Calculate Gratuity & Tax Rules

Calculate your exact legal gratuity payout upon resignation, retirement, or job change. Compliant with the Payment of Gratuity Act 1972, supporting both covered and non-covered establishments with instant ₹20 Lakh tax-free limit evaluation.

Quick How-To Guide

  1. 1Enter your last drawn monthly Basic Salary + Dearness Allowance (DA)
  2. 2Enter your total completed years and months of service with the employer
  3. 3Select whether your company is covered under the Gratuity Act (standard for 10+ employees)
  4. 4Instantly review your Total Gratuity Payable, Tax-Exempt Amount, and Taxable Portion

Why use our tool?

Calculates statutory gratuity using the 15/26 formula for covered employees and 15/30 for non-covered
Automatic 5-year continuous service eligibility validator (including 4 years 240 days rule)
Itemized tax-exempt vs taxable gratuity breakdown under Section 10(10)
1-Click Export to CSV and detailed retirement calculation schedule
100% private client-side processing

Frequently Asked Questions

Find answers to common questions about using our tool, its features, and how it handles your data privacy.

For employees covered under the Payment of Gratuity Act 1972, Gratuity = (15 × Last Drawn Basic + DA × Tenure in Years) ÷ 26. For tenure, any period of 6 months or more is rounded up to the next full year.
The Government of India has set the maximum tax-exempt gratuity limit at ₹20 Lakhs for private-sector employees under Section 10(10). For government employees, gratuity is 100% tax-free.
Under Section 4(1) of the Act, gratuity is payable upon completing 5 years of continuous service. However, under judicial precedents, 4 years and 240 days in a 6-day workweek (or 4 years 190 days in a 5-day workweek) is legally treated as 5 full years.

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