Gratuity Calculator India 2026 — Gratuity Amount Formula
Calculate gratuity as per Payment of Gratuity Act 1972
Rs.
years
Gratuity Calculation
Gratuity Amount
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Tax-Free Limit
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Taxable Gratuity
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Formula Used
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Per Year of Service
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Eligible After
5 years continuous service
⚠️ Note: Gratuity is paid only after completing 5 years of continuous service. If tenure includes a fraction ≥6 months, it rounds up to next year.
Frequently Asked Questions
For employees covered under Payment of Gratuity Act: Gratuity = (Last Basic+DA × 15 × Years of Service) ÷ 26. For non-covered employees: divide by 30 instead of 26. Years are rounded up if 6+ months served in last year.
Gratuity up to Rs.20 lakh is tax-free under Section 10(10) of Income Tax Act. Amount above Rs.20 lakh is taxable as salary income. Government employees receive full gratuity tax-free with no limit.