Calculate employee gratuity instantly using the Payment of Gratuity Act 1972 formula. For private sector, government, and seasonal workers.
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Calculate employee gratuity instantly using the Payment of Gratuity Act 1972 formula. For private sector, government, and seasonal workers. This free tool is built specifically for Indian businesses, MSMEs, and entrepreneurs.
Frequently Asked Questions
Employees who have completed 5 years of continuous service are eligible for gratuity. Under the Payment of Gratuity Act 1972, establishments with 10 or more employees must pay gratuity.
For covered employees: (Last Basic+DA × 15 × Years of Service) ÷ 26. For uncovered employees: (Last Basic+DA × 15 × Years) ÷ 30. The maximum tax-exempt gratuity is ₹20 lakhs.
Gratuity up to ₹20 lakhs received by private sector employees is fully tax-exempt. Government employees have full exemption without limit. Amount above ₹20 lakhs is taxable at applicable income tax slab rates.