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Gratuity Calculator
🤝 Gratuity Calculator
Calculate the gratuity payout you're entitled to under the Payment of Gratuity Act, 1972, based on your last drawn basic salary and total years of service.
Gratuity = (Last Basic + DA) × 15 × Years of Service ÷ 26
Tax-free up to ₹20 lakh · Minimum 5 years of continuous service required
Frequently Asked Questions
Do I need exactly 5 years to qualify for gratuity?
Generally yes — the Act requires a minimum of 5 years of continuous service, with some exceptions for death or disablement where the minimum service requirement is waived.
Why is the formula divided by 26, not 30?
26 represents the average number of working days in a month under the Act's calculation method, rather than total calendar days — this is the standard statutory formula, not an approximation.
Is the entire gratuity amount tax-free?
Up to ₹20 lakh is tax-exempt for employees covered under the Act; any amount received above that threshold is taxable as per your income tax slab.
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