Gratuity Calculator

Employees who have completed 5 or more years of continuous service with an employer covered under the Payment of Gratuity Act. The 5-year requirement is waived in cases of death or disability, where a shorter-service employee's nominee or the employee themself is still entitled to gratuity.

Gratuity received by employees covered under the Act is tax-exempt up to ₹20,00,000. Any amount above that cap is added to taxable salary income for that year. Government employees typically receive full exemption regardless of amount.

Basic pay plus dearness allowance (DA) only, as of your last working day — it excludes HRA, bonuses, overtime and other allowances, even if they make up a large part of your total CTC.

Yes, gratuity is payable in both cases, as well as on retirement, provided the minimum 5-year service requirement is met. It is one of the few benefits that isn't contingent on the reason for leaving, only on tenure.

Yes — the statutory formula is a legal minimum, not a cap. Some employers offer more generous gratuity terms as part of their compensation policy; always check your specific employment contract or HR policy alongside this calculator's statutory figure.