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Employee Benefits

Gratuity Calculator India (Covered & Non-Covered)

Estimate your final gratuity amount based on your salary and tenure. Perfectly aligned with the latest Payment of Gratuity Act rules and tax limits.

Check My Gratuity
Act Covered Not Covered
50,000
5 Years

For Covered: Serviced > 6 months counts as 1 year.
For Non-Covered: Only full years are counted.

Estimated Gratuity

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Tax-Free Amount

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Taxable Portion

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Eligibility Status

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Benefit Visualization

Understanding Gratuity Rules in India

Gratuity is a monetary benefit paid by the employer to an employee upon retirement or resignation after completing at least 5 years of services.


Act Covered Formula:
Gratuity = (15/26) × Last Drawn Salary × Years of Service
Note: Final tenure is rounded to the nearest year (e.g., 5 years 7 months = 6 years).


Not Covered Formula:
Gratuity = (15/30) × Average 10 Months Salary × Full Years of Service
Note: Rounding is not allowed; only full completed years are counted.


The maximum tax-exempt limit for gratuity in the private sector was increased to 20 Lakh by the government.

What is the 5-year eligibility rule?

To be eligible for gratuity, an employee typically must complete at least five continuous years of service with the same employer. Exception applies in case of death or disablement.

Is gratuity taxable?

For government employees, it is fully exempt. for private employees, it is exempt up to 20 Lakh (or the actual amount received/calculated, whichever is lower).