Calculate your gratuity amount as per Payment of Gratuity Act 1972
Gratuity is a retirement benefit paid by an employer to an employee as a token of appreciation for the services rendered. It is governed by the Payment of Gratuity Act, 1972 in India. Gratuity is payable to an employee who has completed 5 or more years of continuous service.
For organisations covered under Gratuity Act: Gratuity = (Last drawn Basic + DA salary / 26) x 15 x Number of years of service. For organisations not covered: Gratuity = (Last drawn Basic + DA salary / 30) x 15 x Number of years of service.
What is the minimum service for gratuity in India?
An employee must complete a minimum of 5 years of continuous service to be eligible for gratuity. However, in case of death or disability, gratuity is payable even before 5 years of service.
Is gratuity taxable in India?
Gratuity received by government employees is fully exempt from income tax. For private sector employees, gratuity up to Rs 20 lakhs is exempt from tax. Amount exceeding Rs 20 lakhs is taxable as per your income tax slab.
How much gratuity for 10 years of service at Rs 50,000 basic salary?
Gratuity = (50,000 / 26) x 15 x 10 = 1,923 x 15 x 10 = Rs 2,88,461. Use our calculator above for your exact gratuity amount based on your salary and years of service.
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