About the Gratuity Calculator
Calculate your Gratuity payout easily. Find out how much money you will receive upon resignation or retirement after 5 years of service. Understanding how this works can significantly improve your financial planning. This tool is designed to provide you with the most accurate and up-to-date calculations required for your specific needs.
The Mathematical Formula
How to use this calculator?
Enter Basic Salary
Input your last drawn monthly Basic Salary.
Enter Dearness Allowance
Input your DA if applicable (otherwise leave it as 0).
Enter Tenure
Input the total number of years and months you have worked in the current company.
Check Eligibility
If your tenure is at least 5 years, the calculator will instantly show your gratuity payout.
Frequently Asked Questions (FAQs)
Q. When am I eligible for Gratuity?
Under the Payment of Gratuity Act, you become eligible for gratuity only after completing 5 continuous years of service with the same employer.
Q. How is the 6-month rule applied?
If you have worked for more than 6 months in your final year (e.g., 5 years 7 months), it is rounded up to the next full year (6 years) for calculation.
Q. Is Gratuity amount taxable?
Gratuity received up to รขโยน20 Lakhs is completely tax-free for all employees in India.
Source & Citations: Mathematical models used in this tool are based on standard compounding formulas as recognized by the Reserve Bank of India (RBI) and major financial institutions.
Disclaimer: The results provided by this calculator are for informational purposes only. Actual returns or loan values may vary based on market conditions, bank policies, and taxation laws.