Gratuity Calculator – Calculate Gratuity Amount
Estimate your gratuity payout based on the 15/26 formula. Check eligibility criteria and tax exemption limits up to ₹25 Lakhs.
Gratuity Amount
₹1.44 L
Tax Exempt
₹1.44 L
Taxable
₹0
Calculation Formula
₹50,000 × 15/26 × 5
Note: Gratuity up to ₹25 Lakh is tax-exempt. Amount above ₹25 Lakh is added to your taxable income.
💡 Understanding Gratuity Calculations
Gratuity is a statutory right under the Payment of Gratuity Act, 1972. It is a monetary reward given by an employer to an employee for services rendered to the company. To be eligible, an employee must have completed at least 5 years of continuous service with the same employer.
The legal formula for calculation is: (15 / 26) × Last Drawn Salary × Number of Years of Service. Here, 'Last Drawn Salary' means your Basic Salary plus Dearness Allowance (DA). For years of service, anything above 6 months is rounded up to the next full year.