Is 5 years mandatory for gratuity payout?

Yes. Under Section 4 of the Payment of Gratuity Act, an employee must render at least 5 years of continuous service, except in cases of death or disablement where the 5-year condition is waived.

What is the maximum tax-free gratuity limit in India?

The statutory tax-free exemption limit for gratuity for non-government employees covered under the Act is ₹20,00,000 under Section 10(10) of the Income Tax Act.

How are fractional years counted for gratuity?

If an employee has worked for more than 6 months in their final year (e.g. 5 years and 7 months), it is rounded up to the next full year (6 years). If less than 6 months, it is rounded down.

What is the Gratuity Calculator and how do I use it?

The Gratuity Calculator is a free, fast online utility designed to Calculate statutory gratuity payout under the Payment of Gratuity Act 1972 using the standard 15/26 formula.. To use it, enter your inputs or upload your file into the tool interface above, adjust any custom options, and get your calculated or converted result immediately.

Is my data stored or tracked when using Gratuity Calculator?

No. All calculations run strictly in your web browser. None of your entered values, confidential numbers, or personal text are stored, logged on our servers, or shared with third parties.

Gratuity Calculator

Calculate your retirement or resignation gratuity payout. Enter your last drawn basic salary and completed years of service to compute statutory benefits and tax exemption limits.

Last Drawn Monthly Basic + DA (₹)

Total Years of Continuous Service

Must be 5 years or more for statutory eligibility.

Total Gratuity Payable

₹0.00

Statutory Exemption Status: 100% Tax-Free (Under ₹20 Lakhs)

Calculation Formula: (15 × Last Drawn × Years) / 26

Continuous Service Check: Eligible (≥ 5 Years)

Statutory Disclaimer: These calculators are provided for general informational and educational purposes. Tax calculations may depend on your specific circumstances, exemptions, and current Indian tax laws. Verify important tax liabilities with official government portals or a qualified chartered accountant (CA).