'); w.document.close(); w.print(); } }; } if (typeof taxgstShareResult === 'undefined') { window.taxgstShareResult = function(id, type) { var el = document.getElementById(id); var text = el ? el.innerText : ''; var url = window.location.href; if (type === 'whatsapp') window.open('https://api.whatsapp.com/send?text=' + encodeURIComponent(text + ' ' + url)); else if (type === 'twitter') window.open('https://twitter.com/intent/tweet?text=' + encodeURIComponent(text) + '&url=' + encodeURIComponent(url)); }; } if (typeof taxgstCopyResult === 'undefined') { window.taxgstCopyResult = function(id) { var el = document.getElementById(id); if (el) { navigator.clipboard.writeText(el.innerText).then(function(){ alert('Copied!'); }); } }; } if (typeof taxgstCalcEMI === 'undefined') { window.taxgstCalcEMI = function(p, r, n) { if (!p || !r || !n) return 0; r = r > 1 ? r / 12 / 100 : r; return p * r * Math.pow(1+r,n) / (Math.pow(1+r,n) - 1); }; } Gratuity Calculator
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Gratuity Calculator

Last updated: 2026-05-04
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Gratuity Calculator

Calculate Gratuity Under Payment of Gratuity Act 1972

IT Act 2025
lightbulb Smart Tip: Gratuity is a retirement benefit paid by employers to employees. Use this gratuity calculator to find your payout after 5 years of continuous service. Enter your details below and results will update automatically on the right.

account_balance_wallet Gratuity Calculator India: Employee Details

Use our gratuity calculator to estimate your gratuity payout as per the Payment of Gratuity Act, 1972. Adjust the values to see real-time results on the right.

Basic + Dearness Allowance
Minimum 5 years required (6 months+ rounds up)
5 yrs 15 yrs 30 yrs 40 yrs
Covered under Gratuity Act ▼
Covered under Gratuity Act
Not Covered (Govt/PSU)
Organizations with 10+ employees are covered under the Act

bar_chart Gratuity Computation Summary

ParticularsValue
Last Drawn Salary (Basic + DA)₹50,000
Years of Service (Rounded)10 years
Formula Used(15 × Salary × Years) / 26
Tax Exemption Limit₹20,00,000
Calculated Gratuity₹0
Tax-Exempt Portion₹0
Taxable Gratuity (if any)₹0
Total Gratuity Payable₹0
Tax-Exempt
₹0
Taxable
₹0
0%
0%
Tax-Exempt
Taxable
calendar_today Gratuity for Different Tenures expand_more

assignment Gratuity Tax Rules

Employee TypeTax Exemption Limit
Central Government Employees₹25 Lakh (w.e.f. May 2024)
State Government EmployeesAs per state rules (typically ₹20-25 Lakh)
Private Sector (Covered under Act)₹20 Lakh (or actual, whichever is lower)
Private Sector (Not Covered)₹20 Lakh (with different calculation)

info Gratuity Calculation: Complete Guide for Indian Employees

Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for services rendered. It's governed by the Payment of Gratuity Act, 1972.

Gratuity Formula

For Covered Employees:
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26

For Government Employees:
Gratuity = (15 × Last Drawn Salary × Years of Service) / 30

Eligibility Criteria

  • Minimum Service: 5 years of continuous service (4 years 240 days considered as 5 years)
  • Applicable Organizations: Companies with 10 or more employees
  • Exception: In case of death or disability, 5-year rule doesn't apply

When is Gratuity Paid?

  • Retirement (superannuation)
  • Resignation after 5 years
  • Death of employee (paid to nominee)
  • Disablement due to accident or disease

Frequently Asked Questions

Is gratuity taxable?
For government employees, gratuity is fully tax-exempt. For private sector employees, gratuity up to ₹20 Lakh is exempt from tax. Any amount above this is taxable as per your income tax slab.
What if I leave before 5 years?
If you leave before completing 5 years of service, you are not entitled to gratuity under the Payment of Gratuity Act. However, some employers may have their own gratuity policies.
Is gratuity part of CTC?
Yes, gratuity is usually included in the CTC (Cost to Company). Employers typically contribute 4.81% of basic salary towards gratuity.

Frequently Asked Questions

Find answers to common questions about gratuity calculator. Click on any question to expand the answer.

Gratuity is a lump-sum benefit for long-term service. You can calculate your gratuity online using our free gratuity calculator, which uses the official formula as per the Payment of Gratuity Act, 1972.

An employee is eligible for gratuity after completing at least 5 years of continuous service with the same employer. The 5-year rule is relaxed in cases of death or disablement of the employee.

For employees covered under the Act, the formula is: (Last Drawn Monthly Salary / 26) * 15 * Number of Years of Service. The last drawn salary includes basic pay and dearness allowance.

Under the Income Tax Act, 2025, the maximum tax-free gratuity limit is ₹25 Lakhs for employees covered under the Payment of Gratuity Act. For non-government employees not covered under the Act, the exempt limit is ₹20 Lakhs.

Yes, this calculator is updated with the latest gratuity rules under the Income Tax Act, 2025, including the enhanced tax-free limit of ₹25 Lakhs, ensuring your calculations are current and accurate.

gavel Legal Disclaimer

This calculator is for informational and educational purposes only. Investment returns are illustrative and based on assumed rates that may vary. Market-linked investments carry risk and past performance does not guarantee future returns. Interest rates on small savings schemes are reviewed quarterly by the Government of India. This tool should not be considered as financial advice. Consult a SEBI-registered financial advisor before making investment decisions.

verified Source: SEBI / Ministry of Finance, Govt. of India • Last updated: 2026-05-04

update Latest Updates & Regulatory Changes

UPDATED

trending_up Small Savings Rates Q1 2026-27

The Government of India reviews small savings scheme interest rates quarterly. PPF rate is 7.1%, Senior Citizens Savings Scheme is 8.2%, and Sukanya Samriddhi is 8.2% for Q1 FY 2026-27.

NEW

account_balance NPS Tier-I Tax Benefit Enhanced

Under the New Tax Regime, NPS employer contribution deduction under Section 80CCD(2) continues to be available. Under the Old Regime, additional ₹50,000 deduction under 80CCD(1B) is also available.

description Terms, Rules & Regulations

gavel

SEBI & RBI Regulations

Mutual fund investments are regulated by SEBI, and small savings schemes by the Ministry of Finance through RBI. Interest rates on government schemes are reviewed quarterly. Returns on market-linked instruments are not guaranteed and subject to market risks.

verified_user

Rate Assumptions

Investment calculators use assumed rates of return for illustration purposes. Actual returns on market-linked investments (mutual funds, equities) will vary. Small savings scheme rates are as per the latest quarterly notification by the Government of India.

policy

Tax on Investment Returns

Capital gains tax, dividend taxation, and interest income taxation rules apply as per the Income Tax Act, 2025. LTCG, STCG, and debt fund taxation rules have been updated. Consult a tax professional for personalized guidance on investment tax implications.

`;printWindow.document.write(html); printWindow.document.close(); setTimeout(() => { printWindow.print(); }, 250); }function grExportPDF() { grPrintComputation(); }function grExportExcel() { const data = grLastCalculation; if (!data.basic) { alert('Please calculate gratuity first'); return; }let csvContent = 'Gratuity Calculation Report\n'; csvContent += 'Generated On,' + new Date().toLocaleDateString('en-IN') + '\n\n'; csvContent += 'Employee Details\n'; csvContent += 'Last Drawn Basic Salary (Monthly),' + data.basic + '\n'; csvContent += 'Years of Service,' + data.years + '\n'; csvContent += 'Rounded Years,' + data.roundedYears + '\n'; csvContent += 'Organization Type,' + data.orgTypeLabel + '\n'; csvContent += 'Formula Used,' + data.formula + '\n\n'; csvContent += 'Gratuity Summary\n'; csvContent += 'Calculated Gratuity,' + Math.round(data.gratuity) + '\n'; csvContent += 'Tax-Exempt Portion,' + Math.round(data.taxExempt) + '\n'; csvContent += 'Taxable Gratuity,' + Math.round(data.taxableGratuity) + '\n\n'; csvContent += 'Gratuity for Different Tenures\n'; csvContent += 'Years,Covered (Act),Government\n';const tenures = [5, 7, 10, 12, 15, 20, 25, 30]; tenures.forEach(years => { const covered = Math.round((15 * data.basic * years) / 26); const govt = Math.round((15 * data.basic * years) / 30); csvContent += years + ',' + covered + ',' + govt + '\n'; });csvContent += '\nDisclaimer\nThis is for informational purposes only. Verify with your employer.\n';const blob = new Blob([csvContent], { type: 'text/csv' }); const url = URL.createObjectURL(blob); const a = document.createElement('a'); a.href = url; a.download = 'gratuity-calculation-report.csv'; a.click(); URL.revokeObjectURL(url); }// Dropdown z-index fix (reuses same pattern as income-tax-calc) function toggleItDropdown(dropdownId) { const dropdown = document.getElementById(dropdownId); document.querySelectorAll('.custom-dropdown').forEach(d => { if (d.id !== dropdownId) { d.classList.remove('open'); const parentGroup = d.closest('.taxgst-form-group'); if (parentGroup) parentGroup.style.zIndex = ''; } }); dropdown.classList.toggle('open'); const parentGroup = dropdown.closest('.taxgst-form-group'); if (parentGroup) { parentGroup.style.zIndex = dropdown.classList.contains('open') ? '100' : ''; } }// Close dropdowns on outside click document.addEventListener('click', function(e) { if (!e.target.closest('.custom-dropdown')) { document.querySelectorAll('.custom-dropdown').forEach(d => d.classList.remove('open')); document.querySelectorAll('.taxgst-form-group').forEach(fg => fg.style.zIndex = ''); } });// Auto-calculate on page load document.addEventListener('DOMContentLoaded', function() { calculateGratuity(); });
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