Estimate statutory gratuity benefit payable upon retirement or exit under the Payment of Gratuity Act.
Adjust numerical values below or drag sliders to recalculate trajectory in real time.
Your latest monthly Basic Salary plus Dearness Allowance (DA). Do not include HRA or special allowances.
Total number of continuous years worked in the organization (Must be 5+ years for eligibility).
Interactive visual breakdown of basic + da salary base vs. statutory gratuity benefit over time.
Comprehensive guide covering foundational concepts, regulatory rules, and advanced strategies.
Gratuity is a statutory monetary benefit provided by an employer to an employee for rendering continuous service to the organization. It is governed by the Payment of Gratuity Act, 1972. An employee becomes eligible for gratuity only after completing at least 5 continuous years of service with the same employer (except in cases of death or disablement where the 5-year rule is waived).
For employees covered under the Act, gratuity received is completely exempt from income tax up to a lifetime ceiling of ₹20 Lakhs under Section 10(10) of the Income Tax Act. Any gratuity received above ₹20 Lakhs is added to taxable salary. For employees not covered by the Act (or voluntary gratuity schemes), the calculation formula changes to: $G = (15 \times S \times N) / 30$, where 30 days are considered in a month instead of 26.