Gratuity Calculator
Gratuity payable under the Payment of Gratuity Act, 1972.
Gratuity details
Gratuity is payable after 5 years of continuous service. Service beyond 6 months in the final year counts as a full year.
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How gratuity is calculated
For employees covered by the Payment of Gratuity Act, 1972:
Gratuity = (Last salary × 15 × Years of service) ⁄ 26
“Last salary” is your last-drawn Basic + Dearness Allowance, and 26 represents working days in a month. Gratuity is payable after 5 years of continuous service (except on death or disablement). It is tax-exempt up to ₹20 lakh; anything above is taxable at your slab rate.
Results are estimates for general guidance based on standard formulas and the inputs you provide. They are not professional or tax advice. For decisions that matter, talk to a Prime professional.