Calculate your gratuity as per the Gratuity Act — covered & non-covered employees, tax exemption up to ₹20 lakh
Employment Type
Employment type
Formula Applied
(Basic + DA) × 15 × Years of Service ÷ 26
As per Payment of Gratuity Act 1972 — 26 working days per month
Your Details
₹
years
Service Rounding
Service rounding rule
Gratuity Amount
₹0
enter your details above
Tax-Exempt (up to ₹20L)
₹0
Taxable Amount
₹0
Effective Years Counted
0 yrs
Per Year of Service
₹0
✓ Fully tax-exempt under Sec 10(10) — within ₹20L limit
₹0
Gratuity
Tax-Exempt Gratuity
₹0
Taxable Gratuity
₹0
Monthly Gratuity Accrual
₹0
Daily Gratuity Accrual
₹0
Gratuity at Different Service Lengths
Years of Service
Effective Years
Gratuity (Covered)
Gratuity (Not Covered)
ⓘ Gratuity is payable after minimum 5 years of continuous service. Tax exemption up to ₹20 lakh under Sec 10(10). Consult HR or a CA for exact computation in your case.
What's in your ₹99 PDF Report
Gratuity Amount
₹0
Tax-Exempt
₹0
Per Year Accrual
₹0
Tax Status
—
Gratuity certificate with formula computation
Comparison at 5, 10, 15, 20, 25, 30 years of service
Tax exemption analysis under Sec 10(10)
Tips to negotiate gratuity in your offer letter
EPS pension & PF corpus strategy
One-time payment · Instant download · Shareable PDF
Frequently Asked Questions
What is the gratuity formula under the Payment of Gratuity Act? +
Covered under Act: Gratuity = (Last Drawn Basic + DA) × 15 × Years of Service ÷ 26. The divisor 26 represents working days in a month. Not covered: Gratuity = (Basic + DA) × 15 × Years ÷ 30. The divisor 30 is used for organisations with fewer than 10 employees.
Who is eligible for gratuity? +
Employees who have completed minimum 5 years of continuous service are eligible. The Gratuity Act applies to organisations with 10 or more employees. Gratuity is payable on retirement, resignation, death, or disablement. In case of death or disablement, the 5-year minimum does not apply — it is payable immediately.
Is gratuity taxable? +
Gratuity is tax-exempt up to ₹20 lakh for private sector employees under the Gratuity Act. Government employees get full exemption. Any amount above ₹20 lakh is added to taxable income and taxed as per your slab. The ₹20 lakh limit was revised upward from ₹10 lakh in 2019.
What is the maximum gratuity payable? +
The tax-exempt ceiling is ₹20 lakh. However, an employer can voluntarily pay more — the excess above ₹20 lakh is taxable in the employee's hands. There is no legal upper cap on the actual gratuity an employer chooses to pay, though the statutory obligation is computed using the Gratuity Act formula.
How are years of service counted for gratuity? +
Years of service are rounded to the nearest half-year. If remaining months after completed years are 6 months or more, they count as one additional year. Example: 10 years 7 months = 11 years; 10 years 4 months = 10 years. This applies to employees covered under the Gratuity Act.