Gratuity Calculator India
Calculate gratuity amount legally owed after 5 years of service in private sector.
What is Gratuity?
Gratuity is a lump sum amount paid by employer to employee as a token of appreciation for services rendered. Eligible after 5 years of continuous service. Maximum limit: ₹20 lakhs (tax-free).
Calculate Your Gratuity
If months ≥ 6, it's rounded to next year
Tax Implications
Your gratuity is within ₹20 lakhs limit. It's fully tax-exempt under Section 10(10) of Income Tax Act.
Amount exceeds ₹20 lakhs. Only ₹20,00,000 is tax-free. Excess ₹ will be taxed as per your slab.
Eligibility for Gratuity
- • Completed 5 years of continuous service
- • Retiring from service
- • Resigned after 5 years
- • Terminated (except for misconduct)
- • Death/disability (eligible even before 5 years)
- • Worked less than 5 years (except death/disability)
- • Terminated for misconduct, fraud, or criminal offense
Gratuity Formula
26 = Average working days per month
1/4th of salary for each 6 months
Important Points
- • Employer must pay gratuity within 30 days of it becoming payable
- • Maximum gratuity (tax-free): ₹20 lakhs
- • Gratuity is calculated on last drawn salary only (not average)
- • Service period: months ≥ 6 are rounded to 1 year
- • If not paid, file complaint with Labour Commissioner
- • Can claim interest on delayed payment @ 10% p.a.
How to Claim Gratuity
- Apply to employer in Form I within 30 days of leaving
- Employer will issue Form J with gratuity amount
- Payment must be made within 30 days
- If employer refuses, file complaint with Controlling Authority (Labour Office)
- In case of death, nominee/legal heir can claim in Form K
This is an estimate based on standard formula. Actual amount may vary based on company policy and applicable rules. This tool provides legal information based on Indian laws. For serious matters, consult a registered Advocate.