MyAIUtility

Gratuity Calculator India

Calculate gratuity amount based on Indian labor laws

Enter Details

Leave as 0 if DA is not applicable

Organizations with 10+ employees are typically covered

Eligible for Gratuity

You have completed 10 years of service

Gratuity Amount

₹2,88,462

(₹50,000 × 15 × 10) ÷ 26

Calculation Details

Last Drawn Salary (Basic + DA)₹50,000
Completed Years of Service10 years
Calculation Factor15 days / 26

Tax Implications

Total Gratuity₹2,88,462
Tax Exempt (Max ₹20 Lakh)₹2,88,462
Taxable AmountNil

Gratuity Rules in India

Eligibility Criteria

  • Minimum 5 years of continuous service
  • Applicable on resignation, retirement, or death
  • Death/disability: No minimum service required
  • Service > 6 months in last year counts as full year

Gratuity Formula

  • Covered: (Salary × 15 × Years) ÷ 26
  • Not Covered: (Salary × 15 × Years) ÷ 30
  • Salary = Last drawn Basic + DA
  • Maximum gratuity: ₹20,00,000 (tax exempt)