Gratuity Calculator

Gratuity is a monetary benefit given by an employer to an employee in recognition of their long-term service. It is usually paid at the time of retirement, resignation, or termination after completing at least 5 years of continuous service.

Key Rules:

• Eligibility: Minimum 5 years of continuous service (4 years and 7 months is often rounded to 5).
• Tax Exemption: Up to ₹20 Lakhs is tax-free for private sector employees. For govt employees, it's fully tax-free.
• Calculation Formula: (15 * Last Drawn Salary * Tenure) / 26 for covered employees.
• Salary Definition: Includes only Basic Salary and Dearness Allowance (DA).