![Gratuity Calculator India 2025 - Calculate Gratuity as per Payment of Gratuity Act 1972 [Super-Calculator.com] Free online Gratuity Calculator for Indian employees. Calculate gratuity amount instantly as per Payment of Gratuity Act 1972. Real-time calculations with tax implications and ex-gratia split for amounts above Rs 20 lakhs. gratuity calculator, gratuity calculation India, Payment of Gratuity Act 1972, gratuity formula, employee gratuity, tax free gratuity, ex-gratia payment](https://super-calculator.com/wp-content/uploads/India-Gratuity-Calculator-1-1024x536.png)
Gratuity Calculator
Calculate Gratuity as per Indian Labor Laws – The Payment of Gratuity Act, 1972
Years
Months
Total Gratuity:
Rs. 0
The Gratuity Amount, if applicable has been updated below
Gratuity Calculation Results
| Basic Salary (Monthly) | Rs. 0 |
|---|---|
| Dearness Allowance (Monthly) | Rs. 0 |
| Total Monthly Salary (Basic + DA) | Rs. 0 |
| Total Service Period | 0 years, 0 months |
| Eligible Service Years | 0 years |
| Gratuity Formula Applied | (Basic + DA) × 15 × Years ÷ 26 |
| Total Gratuity Amount | Rs. 0 |
Key Information About Gratuity Calculation:
- Gratuity = (Basic Salary + Dearness Allowance) × 15 × Years of Service ÷ 26
- Minimum 5 years of continuous service required for gratuity eligibility
- Additional months: 6 months or more are rounded up to 1 year
- Additional months: Less than 6 months are ignored in calculation
- Maximum gratuity limit: Rs. 20,00,000 (as per current rules)
- The number “26” represents average working days in a month
- Gratuity is exempt from income tax up to Rs. 20,00,000
Understanding the Gratuity Formula:
Formula Breakdown:
Gratuity = (Basic Pay + DA) × 15 × Completed Years of Service ÷ 26
Component Explanation:
- Basic Pay + DA: Your last drawn basic salary plus dearness allowance
- 15: Number of days of wages for each completed year of service
- Completed Years: Total years rounded (6+ months = 1 year, <6 months ignored)
- 26: Average number of working days in a month (30 – 4 Sundays = 26)
Example Calculation:
Employee Details:
Basic Salary: Rs. 50,000 | DA: Rs. 10,000 | Service: 10 years 8 months
Step 1: Total Monthly = 50,000 + 10,000 = Rs. 60,000
Step 2: Service Years = 10 + 1 (8 months rounded up) = 11 years
Step 3: Gratuity = 60,000 × 15 × 11 ÷ 26 = Rs. 3,80,769.23
Tax Implications:
- Up to Rs. 20,00,000: Completely tax-free under Section 10(10) of Income Tax Act
- Above Rs. 20,00,000: Excess amount treated as taxable ex-gratia payment
- Government Employees: No maximum limit, entire amount is tax-free
Disclaimer: This calculator provides approximate values based on the Payment of Gratuity Act, 1972.
For official calculations, please consult your HR department or refer to your company’s gratuity policy.