Tax
Gratuity Calculator
Calculate gratuity amount payable after 5 years of service
Popular Calculators
Enter Details
₹
Yrs
Mo
Results
Gratuity Amount—
Tax-Free up to—
Tax-Free
Taxable
Example Calculations
Quick reference scenarios to validate your planning
| Scenario | Result |
|---|---|
| Basic+DA ₹50,000, 10 years service | Gratuity: ₹2,88,462 |
| Basic+DA ₹80,000, 20 years service | Gratuity: ₹9,23,077 |
How It Works
Formula, methodology and key concepts explained
Gratuity is a statutory benefit under the Payment of Gratuity Act, 1972. Employers with 10+ employees must pay gratuity. The maximum tax-free gratuity is ₹20 lakh (revised in 2018).
Pro Tips for Tax
Expert guidance to get the most out of your calculation
Track Stocks Behind Your Calculations
Add any stock to Alerfo and get instant alerts when news breaks — earnings, results, SEBI filings, analyst upgrades & more.
Frequently Asked Questions
Common questions about Gratuity Calculator
- Gratuity = (Last drawn Basic + DA × Years of Service × 15) / 26. The 15/26 factor means 15 days' pay per year (26 working days per month). For service period with 6+ months, round up to the next year.
- For employees under the Payment of Gratuity Act, gratuity up to ₹20 lakh is completely tax-free. Amount exceeding ₹20 lakh is taxable. For government employees, full gratuity is tax-free.
- Gratuity is payable when an employee completes at least 5 years of continuous service and leaves the company (resignation, retirement, death/disability). After death/disability, the 5-year rule is waived.
Key Numbers to Know
Benchmark figures for Tax planning in India
Related Calculators
You might also find these useful
Disclaimer: All calculations are estimates for planning purposes only. Results are based on the inputs you provide and assume constant rates. Actual returns may vary due to market conditions, inflation, tax law changes, and other factors. This is not financial advice. Consult a SEBI-registered investment advisor for personalised guidance. GST rates and income tax slabs are as per latest available information (FY 2025-26) and may change.
📈 Get free stock alerts on WhatsApp
Join Alerfo Free