Gratuity Calculator
100% FreeCalculate gratuity payable under the Payment of Gratuity Act, 1972 — with eligibility check and ₹20 lakh tax-exemption breakdown.
Gratuity Breakdown
Your entire gratuity is tax-exempt under Section 10(10) of the Income Tax Act.
Embed This Tool
Easy to EmbedAdd Gratuity Calculator to your website or blog in seconds.
- Responsive design
- Lightweight & fast
- No backend required
- Always up-to-date
<iframe
src="https://tools.town/embed/gratuity-calculator/"
width="100%"
height="600"
style="border:none; border-radius:12px;"
loading="lazy"
title="Gratuity Calculator">
</iframe>Advertisement
How to Use
- 1 Choose whether your employer is covered under the Payment of Gratuity Act (most are)
- 2 Enter your last drawn monthly salary (Basic + DA only — not HRA, allowances)
- 3 Enter total years of continuous service
- 4 Add any extra months (≥ 6 months counts as a full year)
- 5 See gratuity amount, tax-exempt portion, and any taxable balance
Features
- Both Act-covered (÷ 26) and not-covered (÷ 30) formulas
- Automatic eligibility check (5-year minimum service)
- ₹20 lakh tax-exemption cap applied per Section 10(10)
- ≥ 6-month rounding rule built in
- Indian numbering with Lakh/Crore words
- 100% client-side — your salary data never leaves the browser
Why it Matters
Gratuity is a one-time lump-sum employers pay when you leave after 5+ years. The Act's formula is precise — get it wrong and you might shortchange yourself by lakhs. This calculator implements the exact (15 × salary × years) ÷ 26 formula used in the Payment of Gratuity Act, plus the post-2018 ₹20 lakh tax cap.
Use Cases
Resignation Planning
Know your gratuity before negotiating exit terms
Retirement Corpus
Add expected gratuity to your retirement plan
Tax Planning
Plan around the ₹20 lakh exemption cap if your gratuity is large
Frequently Asked Questions
Why divide by 26 and not 30?
What counts as 'last drawn salary'?
Is gratuity taxable?
What if I leave before 5 years?
Does the 5-year rule include notice period?
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