Gratuity Calculator India, Payment of Gratuity Act 1972

Last Basic + DA (Rs/month)

Years of Service

Decimals allowed, e.g. 7.5 = 7 yrs 6 months

Organisation Type

Reason for Leaving

Minimum 5 years service required. Maximum tax-free: Rs 20 lakhs.

Results update as you type

Gratuity Amount

Rs 2,88,462

Step-by-Step Calculation

Gratuity Reference Tables

Organisation	Formula	Divisor
Covered under Act (10+ employees)	Basic x 15/26 x Years	26 working days
Not covered	Basic x 15/30 x Years	30 calendar days
Death / Disablement	No minimum service required	,
Maximum tax-free	Rs 20,00,000	Section 10(10)

Covered under Act, Rounding

Last year more than 6 months → round UP to next year
Last year 6 months or less → keep as completed year
Example: 10 yr 8 months → counted as 11 years
Example: 10 yr 4 months → counted as 10 years

Tax Treatment

Government employees: Fully exempt
Private (Act covered): Rs 20L exempt
Private (not covered): Rs 20L exempt
Death/Disablement: Fully exempt

About this Calculator ▼

Gratuity is a statutory benefit paid to employees who have served an organisation for at least 5 years. It is governed by the Payment of Gratuity Act, 1972. On resignation, retirement, death, or disablement the employer must pay gratuity within 30 days.

Formula Used

Covered: Gratuity = Basic x 15/26 x Years

Not Covered: Gratuity = Basic x 15/30 x Years

15 = Qualifying days in half a month

26 = Working days/month (covered orgs)

30 = Calendar days/month (uncovered orgs)

Example: Basic+DA = Rs50,000 | Service = 10 yrs 8 months | Covered under Act
8 months > 6 months → round UP to 11 years
Gratuity = 50,000 x 15/26 x 11 = Rs 3,17,308 (fully tax-free)

Is gratuity paid on resignation?▾

Yes, provided you have completed 5+ years of continuous service with the same employer.

What is included in Basic for gratuity?▾

Only Basic Salary + Dearness Allowance (DA). HRA, Special Allowance, and other allowances are excluded per the Supreme Court 2019 ruling.

Can gratuity be forfeited?▾

Yes, if dismissed for misconduct, violence, or damage to company property. The employer must give written notice of forfeiture.

What if the company has fewer than 10 employees?▾

The Payment of Gratuity Act applies only to organisations with 10 or more employees. However, once a company reaches 10 employees, the Act continues to apply even if it later drops below 10.