💼 Gratuity Calculator
Calculate Your Gratuity Amount - Payment of Gratuity Act
Gratuity Calculator
Gratuity is a lump sum payment made by an employer to an employee at the time of leaving the job as a token of appreciation for services rendered, governed by the Payment of Gratuity Act, 1972.
Gratuity Eligibility
- Minimum 5 years of continuous service required
- Applicable to establishments with 10+ employees
- Payable on retirement, resignation, death, or disability
Gratuity Formula
Covered under Act: (Last Salary × 15 × Years) / 26
Not Covered: (Last Salary × 15 × Years) / 30
Tax on Gratuity
- Government employees: 100% tax-free
- Private (covered): Exempt up to ₹20 lakhs
- Others: Least of: ₹20 lakhs / actual gratuity / ₹½ month salary × years
Important Points
- ✓ Calculated on Basic + DA only (no bonus or commission)
- ✓ Must be paid within 30 days of becoming due
- ✓ Maximum limit: ₹20 lakhs (from March 2018)
- ✓ Nominee receives gratuity in case of employee's death
Need HR or Payroll Consultation?
Shree Dwarikadhish Tax Consultancy provides expert HR advisory, payroll management, and employee benefits guidance.
📞 Call: 78988 60859 / 9039636991
✉️ Email: shreedwarikadhishtax@gmail.com