Gratuity Calculator India
The Gratuity Calculator computes the statutory gratuity benefit payable by an employer to an employee upon retirement, resignation, or superannuation after completing 5 or more years of continuous service.
Your Estimated Gratuity Payout
₹ 0.00
- Calculation is based on the formula: (15 × Last Drawn Basic + DA × Tenure) / 26.
- Eligibility: Minimum 5 years of continuous service is required under the Payment of Gratuity Act, 1972.
- Tax Exemption: Gratuity up to ₹20 Lakhs is exempt from income tax under Section 10(10).
How Does the Gratuity Calculator Work?
The Gratuity Calculator computes the statutory gratuity benefit payable by an employer to an employee upon retirement, resignation, or superannuation after completing 5 or more years of continuous service.
By inputting your customized parameters into the calculator sliders or numeric input fields above, the tool immediately processes the mathematical formulas in real time to generate interactive visual graphs, principal vs interest splits, and detailed summary tables.
Gratuity Calculation Formula (Covered under Gratuity Act)
Variables Explained:
| 15 | 15 working days wages for every completed year of service |
| Last Drawn Salary | Last monthly Basic Salary + Dearness Allowance (DA) |
| Tenure | Total completed years of service (More than 6 months is rounded up to 1 year) |
| 26 | Standard working days in a month (excluding 4 Sundays) |
Gratuity Calculation Example
Applying the formula: (15 × 60,000 × 10) / 26 = ₹3,46,153.85. The employee is entitled to receive approximately ₹3.46 Lakhs as gratuity, which is entirely tax-exempt.
Example Input Parameters:
- Last Drawn Basic + DA ₹60,000 / month
- Total Service Tenure 10 Years
Calculated Output Summary:
- Gratuity Amount ₹3,46,154
- Tax Exemption Limit Tax-free up to ₹20 Lakhs (Government/Private)
Frequently Asked Questions (FAQs)
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Financial Disclaimer
Calculator results are mathematical estimates for informational and educational purposes only. Actual returns, EMI values, tax deductions, and maturity proceeds may vary based on lender policies, market conditions, and regulatory revisions.
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