Gratuity Calculator

For employers covered by the Payment of Gratuity Act, 1972, gratuity equals fifteen days' wages multiplied by the number of completed years of service, divided by 26. Wages here means last drawn basic salary plus dearness allowance, not full CTC. Employers outside the Act divide by 30 instead of 26, which produces a smaller amount.

Five years of continuous service with the same employer. The condition is waived if service ends because of death or disablement, in which case gratuity is payable regardless of how long the employee worked.

Not under the plain text of the Act, which requires five years of continuous service. Some High Courts have held that four years and 240 days completes the fifth year, but the position is not settled nationally. It is worth raising with your employer rather than assuming either outcome.

For non-government employees the exemption is the least of the statutory formula amount, the gratuity actually received, and a lifetime ceiling of Rs 20 lakh. The ceiling applies across an entire career rather than per employer. Gratuity received by government employees is exempt in full.

Yes, if they exceed six months. Service of six years and seven months is counted as seven years, while six years and six months is counted as six. Only a period longer than six months rounds up.