Gratuity + PF + Leave Calculator

Full F&F settlement — gratuity, PF & leave with tax breakdown

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Gratuity + PF + Leave Calculator is a free, browser-based tool that lets you full f&f settlement — gratuity, pf & leave with tax breakdown — with zero signup, zero installation. Your data never leaves your browser. Part of 138+ free developer and business tools at wowhow.cloud, built and maintained by a team with 14+ years of hands-on development experience.

TOOLGratuity + PF + Leave Calculator

Your Details

Basic Salary + DA (monthly)

Years of Service

yrs

Leave Balance (days)

Employee PF %

Employer PF %

Avg. Annual Increment %

Gratuity

Rs 2,88,462

2.88 L

Tax exemptRs 2,88,462

Formula: (15 x salary x years) / 26. Max exempt: Rs 20L

PF Accumulation

Rs 30,67,376

30.67 L

Your contributionRs 10,43,032

Employer contributionRs 10,43,032

Interest earnedRs 9,81,311

Interest rate: 8.15% p.a. | PF is tax-free after 5 years

Leave Encashment

Rs 50,000

50,000

Tax exemptRs 50,000

Formula: (Basic + DA) / 30 x leave days. Max exempt: Rs 25L

Total Exit Package

Total Package

Rs 34,05,838

34.06 L

Tax Exempt

Rs 34,05,838

34.06 L

Taxable

Rs 0

Breakdown

GratuityRs 2.88 L (8.5%)

PF BalanceRs 30.67 L (90.1%)

Leave EncashmentRs 50,000 (1.5%)

Tax Summary

Gratuity (exempt up to Rs 20L)Fully exempt

PF (exempt if service > 5 years)Fully exempt

Leave Encashment (exempt up to Rs 25L)Fully exempt

Total taxable amountRs 0

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About Gratuity + PF + Leave Calculator

When leaving an employer, your total settlement includes three separate legal entitlements governed by distinct statutes: gratuity under the Payment of Gratuity Act 1972, EPF accumulation under the EPF Act 1952, and leave encashment under your employment contract. Each has a different formula, different exemption limits, and different tax treatment. This calculator computes all three simultaneously so you have a clear picture of your total exit package before you resign.

How It Works

Gratuity is calculated using the statutory formula: (15 × last drawn Basic + DA × years of service) / 26. The 26-day divisor reflects the average working days in a month under the Act. Service is rounded up if more than 6 months have been completed in the final year. The maximum exempt amount is Rs 25 lakh as per the 2024 amendment.

PF accumulation is modelled using the current EPF interest rate of 8.15% per annum compounded annually on the employee and employer contributions (12% each of basic), minus the EPS portion (8.33% of basic routed to Employees Pension Scheme). Year-wise balance is shown in the results table.

Leave encashment exemption follows the four-pronged minimum test under Section 10(10AA): actual amount, 10 months' average salary, 30 days per year of service, or Rs 25 lakh — whichever is lowest. The excess is shown as taxable in the summary.

Who Is This For

A 12-year employee at a private IT firm resigning to join a startup, wanting to know total gratuity + PF before negotiating the joining date.

A mid-career professional comparing two job offers where one includes PF and gratuity and the other does not.

An HR manager calculating F&F settlement for a departing employee and verifying the gratuity amount before raising the final settlement letter.

An employee who completed exactly 4 years 8 months checking if rounding rules make them eligible for gratuity (they are — 6+ months rounds up to 5 years).

Scope note: Uses the 26-day divisor for private sector gratuity under the Payment of Gratuity Act 1972. Government employees and those in establishments not covered by the Act may use different formulas. EPF accumulation uses the FY 2024-25 rate of 8.15% and assumes consistent contributions throughout service. Actual PF balance may differ due to gaps in employment or employer-specific PF trust rates.

Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on publicly available tax slabs and formulas. Consult a qualified Chartered Accountant, tax professional, or financial advisor for guidance specific to your situation. Built and maintained by the WOWHOW Team with 14+ years of software development experience.

How to Use

Enter your last drawn basic salary + DA and years of service

Add your leave balance and PF contribution percentages

View three result cards — Gratuity, PF Accumulation, and Leave Encashment

Check the tax summary to see how much is taxable vs exempt

Frequently Asked Questions

Gratuity = (15 x last drawn salary x years of service) / 26. You must have completed at least 5 years of service. Maximum tax-exempt amount is ₹20 lakh.

The current EPF interest rate of 8.15% per annum is used for PF accumulation estimates. This rate is set by the government annually.

Tax exemption is the minimum of: (a) actual amount received, (b) 10 months average salary, (c) 30 days per year of service, (d) ₹25 lakh. Only the excess is taxable.

This calculator uses private sector formulas (26-day divisor for gratuity). Government employees use a 30-day divisor, which gives a slightly different result.

There is no legal cap on EPF accumulation, but Budget 2021 introduced a tax on EPF interest above Rs 2.5 lakh/year for employee contributions and Rs 5 lakh/year where the employer also contributes. PF corpus grows at the EPF interest rate (8.15% for FY 2024-25) compounded annually.

Partial PF withdrawal is allowed for specific purposes: house purchase (after 5 years), marriage (after 7 years), medical emergency (any time), and education (after 7 years). Full withdrawal is only allowed on resignation after 2 months of unemployment or on retirement at age 58.

For private sector employees covered under the Payment of Gratuity Act, the tax-exempt amount is the minimum of: actual gratuity received, Rs 20 lakh (now Rs 25 lakh post-2024 amendment), or the statutory formula amount. The excess over the exempt limit is added to taxable income in the year of receipt.