Best Gratuity Calculator

Gratuity Calculator

Last Drawn Salary (Basic + DA) Years of Service Company Type Covered Under Gratuity Act Not Covered (Non-Act)

Gratuity FAQs

What is Gratuity?

Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for services rendered, usually after 5 years of continuous service.

Who is eligible for Gratuity?

Employees completing 5 years of continuous service in a company with 10+ employees are eligible under the Gratuity Act.

How is Gratuity calculated?

For Act companies: (15 × Last Drawn Salary × Years of Service) ÷ 26. For Non-Act companies: (15 × Last Drawn Salary × Years of Service) ÷ 30.

Is Gratuity taxable?

Yes, gratuity is taxable above the exempted limit. The exemption depends on whether you work in government or private sector.