Retirement Benefit
Gratuity Calculator (Payment of Gratuity Act)
Gratuity is a statutory monetary benefit provided by employers in India to employees upon leaving service after completing 5 or more continuous years. Compute your payout and tax-exempt portion under Section 10(10).
Employment Parameters 15/26 Formula
*Only Basic Salary and Dearness Allowance are counted; allowances like HRA, LTA, and bonuses are excluded.
*Minimum 5 continuous years required for eligibility. If service is 8 years and 7 months, it rounds up to 9 years.
Gratuity Payout Summary
Total Gratuity Payable
₹ 3,00,000
Tax-Exempt Gratuity u/s 10(10):
₹ 3,00,000
Taxable Gratuity (Above ₹20L cap):
₹ 0
Maximum Statutory Exemption Cap:
₹ 20,00,000
Statutory Gratuity Formula (Payment of Gratuity Act, 1972)
Gratuity = (15 × Last Drawn Basic Salary & DA × Completed Years of Service) / 26
The denominator 26 represents the number of working days in a month (excluding 4 Sundays), and 15 represents 15 days of wages for every completed year of service.
Section 10(10) Income Tax Exemption Limits
- Government Employees: Entire gratuity received by central, state, or defense personnel is completely tax-free without any upper limit.
- Private Sector Covered under Act: Lowest of:
- Actual gratuity received.
- Statutory ceiling of ₹20,00,000.
- 15 days' wages for each completed year of service based on (15/26).