Gratuity Calculator
Gratuity payable on leaving after five years of service.
Gratuity Calculator
Gratuity payable on leaving after five years of service.
- Gratuity payable
- ₹3.46 lakh
- Exempt from tax
- ₹3.46 lakh
- Taxable portion
- ₹0
How is this calculated?
Formula: Gratuity = Last drawn (Basic + DA) × 15/26 × completed years of service.
Example: ₹60,000 basic + DA and 10 years of service gives about ₹3.46 lakh.
- Applies to employees covered by the Payment of Gratuity Act with at least five years of continuous service.
- Statutory exemption is capped at ₹20.00 lakh.
Your entries are user inputs; rates and returns you cannot control are assumptions. Results are illustrative, not a statutory computation.
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How this calculator works
Gratuity = Last drawn (Basic + DA) × 15/26 × completed years of service.
Example
₹60,000 basic + DA and 10 years of service gives about ₹3.46 lakh.
Assumptions
- Applies to employees covered by the Payment of Gratuity Act with at least five years of continuous service.
- Statutory exemption is capped at ₹20.00 lakh.
Frequently asked questions
Do I need five years of service?
Generally yes, except where service ends due to death or disablement.
Is gratuity taxable?
It is exempt up to the statutory ceiling; anything above that is taxed as salary income.
Statutory limits used here reflect FY 2025-26 (AY 2026-27). Results are illustrative and do not constitute tax, legal or investment advice. Speak to a Bluman Chartered Accountant before acting on them.
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