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Gratuity calculator.
What an employee is owed under the Payment of Gratuity Act, and how much of it is tax-free.
Gratuity payable
₹1,84,615
for 8 years of service
- Years counted
- 8
- Tax-free (up to ₹20 lakh)
- ₹1,84,615
- Taxable
- ₹0
15 days’ wages for every year, where a month is 26 working days. A final part-year of more than six months counts as a full year. The 5-year rule is waived on death or disablement.
A guide for planning, using the standard rules. Your figures can differ with your company’s salary structure or state rules — check with your accountant before filing.
How it’s worked out
- 01
The formula
Last drawn basic plus DA × 15 × years of service ÷ 26. That is 15 days’ wages for every year, where a month counts as 26 working days.
- 02
Counting the years
Every completed year counts, and a final part-year of more than six months counts as a whole year. 7 years and 8 months is 8 years; 7 years and 5 months is 7.
- 03
Eligibility
Gratuity is payable after 5 years of continuous service, except on death or disablement, when the 5-year rule doesn’t apply.
Common questions
How much gratuity is tax-free?
Up to ₹20 lakh in a lifetime for private-sector employees. Anything above that is taxed as salary.
Does the company have to pay gratuity?
Yes, once it has had 10 or more employees on any day in the past 12 months.
What if the company isn’t covered by the Act?
Gratuity can still be paid, but the formula uses half a month’s wages (over 30 days) for each completed year.
Kyvora works this out for every employee, every month.
Attendance, leave, PF, ESI and professional tax flow straight into payroll, payslips and the bank file.
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