Total Gratuity payable
₹0
Tax exempt amount: ₹0
The taxes applicable to the gratuity amount depends on the type of employee:
The gratuity amount received by any government employee is exempt from the income tax.
For private-sector employees, the least of the following three amounts will be exempt from income tax provided that the employer is covered under the Payment of Gratuity Act,
The maximum tax-exempt gratuity amount an employee can claim in his/her entire professional life cannot go beyond Rs 20 lakh.
Any employee of a private company that provides EPF facilities is eligible to receive an amount as gratuity after completing 5 years of service. However, an employee is also eligible to get the gratuity before five years if he/she gets injured and disabled in an accident or due to a disease. All gratuity payments are controlled by the laws laid down under the Payment of Gratuity Act 1972. The amount depends on the last drawn salary and the years of service served to the company.
If you are eligible for payment of gratuity, you must first check how much you are eligible for. Our online gratuity calculator will help you in that aspect too.
The formula used by our online gratuity calculator is:
G = n*b*15/26
In the formula, the values are the following.
| Variable | Description |
|---|---|
| N/n | The number of years you have worked in the concerned organisation |
| B/b | Last drawn basic salary plus Dearness Allowance (DA) |
| G | Gratuity amount you are eligible for |
For example, if individual A has worked with an organisation for 5 years, and your basic salary plus DA amounted to Rs. 30,000 every month, you are eligible to receive 5*30000*15/26 = Rs. 86,538.46 as gratuity.
Note that under the existing laws –