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About this tool
Gratuity payable under the Payment of Gratuity Act with 15/26 formula and tax-free cap.
Gratuity Calculator India applies the Payment of Gratuity Act, 1972 formula - 15 days of last drawn basic plus DA for every completed year, divided by 26 - and shows what you should receive when you resign or retire. It also runs the section 10(10) exemption test against the Rs 20 lakh lifetime cap so you can see how much of the payout is tax free and how much is added to salary income. Employers outside the Act (the 15/30 half-month basis) and government employees, whose gratuity is fully exempt, are handled separately.
Open Gratuity Calculator India on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
A part-year longer than six months counts as a whole year under the Act, and the tool applies that instead of truncating your service.
Switch between the 15/26 statutory basis and the 15/30 half-month basis used by employers outside the Act.
Enter exemption already used at earlier employers and the Rs 20 lakh limit is reduced accordingly.
For employers covered by the Payment of Gratuity Act it is last drawn monthly basic plus dearness allowance multiplied by 15, multiplied by years of service, divided by 26. Employers not covered by the Act use a half month's average salary for each completed year.
Generally no - the Act requires five years of continuous service. The condition is waived if service ends because of death or disablement, in which case gratuity is payable for the service actually rendered.
For non-government employees the exemption under section 10(10) is the least of the gratuity received, the statutory formula amount, and Rs 20,00,000 - and that Rs 20 lakh is a lifetime limit across all employers. Government gratuity is fully exempt.
No. You must first complete five years; only then does a part-year in excess of six months round up. Once eligible, 10 years and 8 months is counted as 11 years in the formula.
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