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Gratuity (India)
Retiring or leaving a job in India? Calculate your eligible Gratuity amount.
Last Updated: March 1, 2025
# What is Gratuity (India)?
A Gratuity Calculator estimates the lump sum benefit paid by an employer to an employee upon leaving the job after 5+ years of service (under Indian Payment of Gratuity Act).
# How Does Gratuity (India) Work?
- 1Enter Basic Salary + DA.
- 2Enter Total Years of Service.
- 3The tool applies the 15/26 formula.
- 4View Total Gratuity Payable.
# Formula Used
`Gratuity = (15 * Last Drawn Salary * Tenure) / 26`# Common Use Cases
Resignation planning.
Retirement estimation.
HR payroll verification.
# Why Use This Tool?
Updates for 20L tax-free limit.
Accurate formula adherence.
Simple input.
Trusted & Secure
• Calculations are performed entirely in your browser.
• No signup, no data storage, no tracking.
• Formulas based on standard financial principles.
# Frequently Asked Questions
Minimum tenure required?▼
Generally 5 years of continuous service is required to be eligible for gratuity in India.
Is gratuity taxable?▼
Gratuity is tax-exempt up to ₹20 Lakhs for government and covered private employees.
Does it apply to contract employees?▼
Typically no, unless specified in the contract or if they meet the continuous service criteria as an employee.
Last updated: March 2025 • v2.1.0 • Secure Client-Side Processing