Free Calculator

Gratuity Calculator

Compute gratuity per the Payment of Gratuity Act, 1972

Inputs

Formula

(15 ÷ 26) × Last Basic × Years

≥ 6 months in any year counts as a full year. Max ₹20 lakh.

Result

Gratuity Amount

₹1,00,962

Last Basic (Monthly)₹35,000
Service Duration5y 0m → 5 years (effective)
Computed Gratuity₹1,00,962
Statutory Cap₹20,00,000
Final Gratuity₹1,00,962

Tax treatment

Gratuity is exempt from tax up to ₹20 lakh for government employees, and up to the least of (actual, 15/26 × last basic × years, ₹20L) for private sector employees.