Loading calculator…
Calculate gratuity payable under the Payment of Gratuity Act, 1972.
We'll instantly compare both tax regimes and show which saves you more.
Indicative result — final figures may differ based on specific facts.
Your result will appear here
Fill in the form on the left and we'll compute your numbers instantly.
Indicative results — final figures may differ based on specific facts and recent amendments. Contact us for a tailored review.
Schedule a 15-minute consultation. We'll walk through your inputs and confirm the result.
Step by step
Fill in the fields with your actual numbers. Sensible defaults are provided.
Detailed methodology
The exact formula, statutory references and edge-cases used to compute your result. Click any card to see the relevant sub-section of the Income Tax Act, 1961.
Gratuity = (Last drawn Basic + DA) × Years of service × 15 / 26. Years of service is rounded up to the next integer if it is 6 months or more. The 5-year minimum service is required for eligibility.
People who use Gratuity Calculator often find these helpful next.
The result is computed instantly using current rates and standard formulas.
See the breakdown and any recommendations. Save or share via email if needed.
For personalized advice, schedule a 15-minute consultation with our team.
Want the math? See Detailed methodology further down this page.
What we assume
What these numbers can and can't tell you.
Percentages, slabs, and the FY 2025-26 numbers we use.
Sections, eligibility, and stacking rules.
Heads up. For situations involving international income, business income, or capital gains, always cross-check with a qualified Chartered Accountant before acting on these numbers.
Up to ₹20,00,000 of gratuity per employer is exempt over a lifetime. Any amount exceeding ₹20L is taxed as salary income. For government employees, the entire gratuity is tax-free without ceiling.
The Act applies to establishments with 10 or more employees. For employees of non-covered establishments, the 5-year rule does not apply — gratuity can be paid even before 5 years as per contract.
Years of service is computed from the date of joining to the date of retirement / exit. Periods of leave without pay are excluded. Last drawn salary is the basic+DA at the time of exit, not the highest salary drawn.
Still have questions?
Reach us by phone, WhatsApp, or send a quick message — we usually reply within a few hours.
