Gratuity Calculator
About This Calculator
This gratuity calculator helps employees estimate the gratuity amount they are eligible for based on their salary and years of service. It follows the standard gratuity formula used in India for both private and public sector employees.
How to Use
- Enter your Basic Pay + Dearness Allowance (D.A) in the first field.
- Enter your Years of Service in the second field.
- Click the Calculate Gratuity button to see the result.
Frequently Asked Questions (FAQ)
How is gratuity calculated for private employees?
Gratuity is calculated as: (Basic Salary + DA) × 15/26 × No. of Years Worked.
Why is gratuity multiplied by 15?
It represents 15 days of wages for every completed year of service.
Is the formula for gratuity 30 or 26?
The divisor is 26 as gratuity considers only working days, excluding Sundays.
What is 4 years 240 days gratuity?
As per the new rule, employees who complete 4 years and 240 days in the fifth year are eligible.
Is gratuity limit increased to 25 lakhs?
As of now, the limit is ₹20 lakhs, though proposals exist to increase it.
Who is eligible for gratuity?
Employees who have completed at least 5 years of continuous service with the same employer.
Is gratuity taxable?
Gratuity received by government employees is fully tax-free. For private employees, the exemption limit is up to ₹20 lakhs.
Can gratuity be claimed before 5 years?
Normally, gratuity is applicable only after 5 years, but in cases of death or disability, it may be paid earlier.
How is gratuity paid?
The employer usually pays the gratuity amount directly to the employee or their nominee.
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