Calculate Your Gratuity as per Payment of Gratuity Act 2026
Gratuity Amount
₹0
Taxable Gratuity
₹0
Tax-Free Amount
₹0
Per Year of Service
₹0
Monthly Equivalent
₹0
📋 Gratuity Formula — Explained
Under Gratuity Act: Gratuity = (Basic + DA) × 15/26 × Years of Service
The 15/26 factor = 15 days pay per year (26 working days in a month).
Not under Gratuity Act: Gratuity = (Basic + DA) × 15/30 × Years of Service
Minimum 5 years of continuous service required to be eligible
If service is 5 years 6 months or more, rounded up to 6 years
Maximum gratuity taxable exemption: ₹20 lakh (raised from ₹10L)
Paid within 30 days of leaving; employer can face penalty for delay
FAQs
What if I leave before 5 years?
Generally no gratuity is payable if you leave before completing 5 years of continuous service. Exception: death or disability — gratuity is paid regardless of tenure, calculated from actual service period. Some companies voluntarily pay partial gratuity for service between 3–5 years.
Is gratuity taxable?
Gratuity up to ₹20 lakh is completely tax-free for government employees. For private sector employees covered under the Gratuity Act, up to ₹20 lakh is exempt. Amount exceeding ₹20 lakh is added to income and taxed at your slab rate.