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Act-covered & non-covered

Gratuity Calculator

Estimates your gratuity payout using the standard formula, and shows whether it falls within the current income-tax exemption limit.

This is a standard-formula estimate, not a guaranteed payout. Gratuity is generally payable only after 5 years of continuous service (waived for death or disablement, reduced to 1 year for fixed-term employees). Verify your actual eligibility and figure with your HR/payroll team.
₹

Basic + DA, as per your last drawn salary. Same figure used by the in-hand salary calculator's gratuity estimate.

Most employers with 10 or more employees are covered under the Act. If yours has fewer, or you're unsure, check your appointment letter or ask HR — gratuity for non-covered employees is usually a matter of employer policy rather than a strict legal entitlement.

Gratuity Estimate

GRATUITY ESTIMATE
Basic salary (monthly) ₹0
Years of service 0 years
Formula used Covered (15/26)

ESTIMATED GRATUITY

₹0

Within the ₹20,00,000 tax-exempt limit (Section 10(10)).

ESTIMATED

Gratuity is generally payable only after 5 years of continuous service (with exceptions). This is a standard-formula estimate, not a guaranteed payout.

Frequently asked questions

What's the difference between "covered" and "not covered"?

Employers with 10 or more employees are covered under the Payment of Gratuity Act, 1972, and must calculate gratuity using a 26-day working month: (Basic × 15 × years) ÷ 26. Smaller employers aren't bound by the Act, and typically use a 30-day calendar month instead: (Basic × 15 × years) ÷ 30 — this is usually a discretionary policy rather than a strict legal requirement.

What is the tax-exempt limit on gratuity?

₹20,00,000 in total under Section 10(10) of the Income Tax Act, unchanged since it was raised from ₹10,00,000 in 2018. This limit applies the same way under both the old and new tax regime, and if you've received gratuity from more than one employer over your career, the combined exempt amount across all of them still can't exceed ₹20,00,000.

Am I eligible if I've worked less than 5 years?

Generally no — 5 years of continuous service is required, except when employment ends due to death or disablement (fully waived) or for fixed-term employees under the Code on Social Security, 2020 (reduced to 1 year). This calculator shows the formula estimate regardless of tenure so you can see what you'd get if eligible — it doesn't check your actual eligibility.