Payroll & Benefits

Gratuity Calculator

Gratuity payable under the Payment of Gratuity Act, 1972 — covered and non-covered employees.

Last Drawn Basic Salary + DA (monthly)

₹

Years of Service (completed)

Employment Type

Gratuity Calculation

Formula: Basic+DA × 15/26 × Years

Gratuity Amount₹2,01,923

Tax-Exempt PortionMin of: Actual, ₹20L, 15-day salary × years₹2,01,923

Taxable Portion₹0

Act Covered: Formula uses 26 working days per month (15/26 per year of service).
Not Covered: Formula uses 30 calendar days (15/30). Tax exemption limit: ₹20,00,000 (enhanced in Budget 2023).

Disclaimer: Results are for estimation purposes only and do not constitute professional financial, tax, or legal advice. Consult a qualified CA or financial advisor before making decisions. Talk to an expert