Gratuity Calculator
Calculate your gratuity under the Payment of Gratuity Act, 1972. See the formula breakdown, tax exemption under Section 10(10), and project your future gratuity with salary growth.
Gratuity
₹2.9L
Organisations with 10+ employees are covered under the Payment of Gratuity Act, 1972.
Gratuity (formula: salary × years × 15/26)
₹2,88,462
≈ 5.8 months of salary
Effective years
10 years
Salary basis
₹50,000
Basic + DA per month
Fully tax-exempt
Your gratuity of ₹2,88,462 is fully exempt under Section 10(10).
Tax breakdown — Section 10(10)
Tax-exempt
₹2,88,462
Taxable
₹0
How is gratuity calculated?
Gratuity = Basic+DA × Years × 15 ÷ 26
= ₹50,000 × 10 × 15 ÷ 26 = ₹2,88,462
15 represents days of wages per year of service. 26 represents working days in a month (excluding 4 Sundays). Service of 6+ months in the final year rounds up to the next full year.
Eligibility: Minimum 5 years of continuous service required (exceptions: death or disability). Tax exemption under Section 10(10): maximum ₹20,00,000 for private sector. Government employees receive full exemption.