Calculate Gratuity Amount
Last Drawn Salary:
₹0
Total Service Period:
0 years
Gratuity Amount:
₹0
About Gratuity Calculator
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for services rendered. It is payable after 5 years of continuous service.
Gratuity Calculation Formula:
Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26
Where Last Drawn Salary = Basic Salary + Dearness Allowance (DA)
Key Points:
- Minimum 5 years of continuous service required
- Maximum gratuity amount: ₹20 lakhs (as per Payment of Gratuity Act)
- 15 days salary for each completed year of service
- 26 working days considered per month
- Tax exemption available under Section 10(10) of Income Tax Act