Gratuity Calculator

Gratuity Calculator India – Calculate as per Payment of Gratuity Act | ComplianceAge

Gratuity Calculator India

Use our free Gratuity Calculator to estimate gratuity amount as per the Payment of Gratuity Act, 1972. This calculator helps you:

  • Calculate exact gratuity based on your salary and service period
  • Automatically compute service years from joining and relieving dates
  • Check gratuity eligibility based on service period
  • Apply standard or custom maximum limits
  • Understand tax exemption limits

Calculation Results

Frequently Asked Questions

How is gratuity calculated in India?

Gratuity is calculated using the formula: (Last drawn basic salary + DA) × 15/26 × Years of service

Who is eligible for gratuity payment?

Employees who have completed minimum 5 years of continuous service are eligible for gratuity.

What is the maximum gratuity amount exempt from tax?

Gratuity up to ₹20,00,000 is exempt from income tax under Section 10(10) of the Income Tax Act.

How are years of service calculated?

Service period of 6 months or more is considered as one full year, while period less than 6 months is ignored.