Gratuity Calculator
Employment Details
* If the remaining months are 6 or more, it is rounded up to a full year for calculation purposes.
Payout Summary
Total Gratuity Amount
₹
Applicable Service Tenure
Years
Tax-Free Amount
₹
Taxable Amount
₹
Calculate Your Exit Payout Instantly
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for their long-term continuous service. Under the Payment of Gratuity Act, 1972, knowing your exact payout helps you plan your transition between jobs or into retirement smoothly.
Are You Eligible for Gratuity?
To be legally entitled to receive a gratuity payout, you must meet the following criteria:
5 Continuous Years
You must have completed at least 5 continuous years of service with the same employer.
Resignation/Retirement
The payout is triggered upon resignation, retirement, or superannuation from the company.
Exceptions
The 5-year rule does not apply if employment is terminated due to death or disablement.
How is Gratuity Calculated?
For employees covered under the Payment of Gratuity Act, the formula is standard across India:
- 15: Represents 15 days of wages for every completed year of service.
- 26: Represents the standard number of working days in a month (excluding 4 Sundays).
- Rounding Rule: If you work for 6 years and 7 months, it is calculated as 7 years. If you work for 6 years and 5 months, it is calculated as 6 years.
Is Gratuity Taxable?
Under the Income Tax Act of India, gratuity payouts are tax-exempt up to a massive limit of ₹20 Lakhs. Any amount exceeding this ₹20 Lakhs threshold is added to your standard income and taxed according to your applicable income tax slab.