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All Tools›Finance & Business›Gratuity Calculator

Gratuity Calculator

Calculate gratuity under the Payment of Gratuity Act 1972

Finance & BusinessFREEYour data never leaves your browser

Gratuity Calculator is a free, browser-based tool that lets you calculate gratuity under the payment of gratuity act 1972 — with zero signup, zero installation. Your data never leaves your browser. Part of 67+ free developer and business tools at wowhow.cloud, built and maintained by a team with 14+ years of hands-on development experience.

Employment Details

Private sector employees covered under the Payment of Gratuity Act

Rs 50,000 per month

Years

Months (0-11)

Gratuity Amount

Eligible for gratuity under the Payment of Gratuity Act

Gratuity Payable

Rs 2,88,462

Tax-Exempt

Rs 2,88,462

Taxable

Rs 0

Tax Treatment

For private sector employees covered under the Payment of Gratuity Act, gratuity up to Rs 25,00,000 (Rs 25 lakh) is tax-exempt under Section 10(10)(ii). Any amount above this is taxable as per your income tax slab.

Formula Breakdown

Gratuity = (Basic + DA) x 15 / 26 x Years of Service

1.Last drawn salary (Basic + DA) = Rs 50,000
2.Years of service = 10 years
3.Gratuity = (50,000 x 15 x 10) / 26
4.Gratuity = 75,00,000 / 26
5.Gratuity = Rs 2,88,462

Key Facts

  • •15 days wages for each completed year of service (15/26 formula assumes 26 working days per month)
  • •If months of service exceed 6 months, it is rounded up to the next full year
  • •Maximum gratuity payable is Rs 25,00,000 (Rs 25 lakh) as per the 2024 amendment
  • •Minimum 5 years of continuous service required (waived in case of death or disability)

How to Use

1

Enter your last drawn basic salary plus dearness allowance

2

Enter your total years and months of service

3

Select whether you are a government or private sector employee

4

View your gratuity amount with formula breakdown and tax details

Frequently Asked Questions

You need minimum 5 years of continuous service to be eligible for gratuity under the Payment of Gratuity Act 1972. In case of death or disability, this requirement is waived.

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