🎁 Gratuity Calculator - Calculate Gratuity Amount Online Free
Calculate your gratuity amount as per the Payment of Gratuity Act 1972. Free online gratuity calculator by agecalculatortool.in
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📚 Understanding Gratuity in India
Gratuity is a lump sum benefit paid by an employer to an employee for services rendered. It's governed by the Payment of Gratuity Act, 1972. Employees who complete 5 years of continuous service are eligible. Gratuity is calculated on the last drawn basic salary plus dearness allowance (DA).
Gratuity Formula
For employees covered under the Act: Gratuity = (Last Salary × 15 × Years of Service) / 26. For non-covered employees: Formula uses 30 days instead of 26. If service exceeds 6 months in a year, it's rounded up to the next year. Maximum gratuity payable is ₹20 lakhs.
Eligibility Criteria
Minimum 5 years continuous service with the same employer is required. Exceptions include death or disability. Gratuity is payable on retirement, resignation, death, or disablement. All establishments with 10+ employees must provide gratuity. It's a statutory right, not a benefit.
❓ Gratuity Calculator - FAQs
Q1: How is gratuity calculated?
Formula: Gratuity = (Last Basic + DA × 15 × Years) / 26. For example, ₹50,000 salary, 10 years: (50000 × 15 × 10) / 26 = ₹2,88,462. If service is 6+ months, round up years (e.g., 5 years 7 months = 6 years).
Q2: Who is eligible for gratuity?
Employees with minimum 5 years continuous service in establishments with 10+ employees. Exceptions: no minimum service required in case of death or disability. Applicable to all sectors - government and private.
Q3: Is gratuity taxable?
For government employees: fully tax-free. For private employees covered under the Act: tax-free up to ₹20 lakhs lifetime. Amount above ₹20 lakhs is taxable as "Income from Salary."
Q4: Can I get gratuity before 5 years?
Generally no, except in case of death or permanent disability. However, some companies voluntarily offer gratuity before 5 years as a benefit. This is not legally mandatory.
Q5: Is this gratuity calculator free?
Yes! Our gratuity calculator is 100% free. Calculate your gratuity eligibility and amount instantly. No registration required.