Gratuity Calculator
Calculate your gratuity amount under the Payment of Gratuity Act. Covers both covered and non-covered employees with tax exemption breakdown up to ₹20 lakh.
Gratuity Amount
₹4,32,692
Tax Exempt Amount
₹4,32,692
Taxable Amount
₹0
Daily Wage
₹1,923
Monthly Equivalent
₹2,404
Calculation Formula
₹50,000 × 15/26 × 15 years
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What is Gratuity?
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for services rendered, when the employee leaves the organisation after completing at least 5 years of continuous service. It is governed by the Payment of Gratuity Act, 1972.
Gratuity Formula
Covered under the Act: Gratuity = Last Drawn Salary × 15/26 × Years of Service. Here 26 represents the working days in a month.
Not covered under the Act: Gratuity = Last Drawn Salary × 15/30 × Years of Service. Here 30 represents calendar days in a month.
Tax Exemption
Gratuity received is tax-exempt up to a maximum limit of ₹20,00,000 (₹20 lakh). Any amount exceeding this limit is taxable as per the employee's income tax slab. For government employees, the entire gratuity amount is exempt from tax.