Gratuity amount
₹0
Tax-exempt (max ₹20 lakh) ₹0
Taxable gratuity ₹0
How gratuity is calculated
For employees covered under the Payment of Gratuity Act: Gratuity = last drawn salary (Basic + DA) × 15 × years of service ÷ 26 — 15 days' pay for each completed year, based on 26 working days. Not covered? A divisor of 30 is used. Gratuity is tax-free up to ₹20 lakh (lifetime) for non-government employees; government employees get it fully tax-free. You generally need 5 years of continuous service.
FAQs
Covered under the Act: last salary (Basic+DA) × 15 × years ÷ 26.
Up to ₹20 lakh lifetime for non-government employees. Government employees: fully exempt.
Generally 5 years of continuous service (except death/disability).