Statutory Tools

Gratuity Calculator (India)

5 Years Rule: You must complete 4 years and 240 days of continuous service.
Tax Limit: Exempt up to ₹20 Lakhs for non-government employees.
Rounding: 6 months or more counts as a full year (e.g., 5.6 years = 6 years).

Calculate your estimated gratuity based on the Payment of Gratuity Act, 1972. Applicable for employees who have completed 5 years of service.

Gratuity Formula: (15/26) × Last Drawn Basic & DA × Years of Service

What is Gratuity?

Gratuity is a monetary benefit given by an employer to an employee in recognition of their long-term service. It is governed by the Payment of Gratuity Act, 1972.

Eligibility

Employee must be eligible for superannuation.
Employee retires.
Employee resigns after 5 years of continuous service.
In case of death or disablement due to accident or disease (5-year rule doesn't apply).

Chat on WhatsApp