Gratuity Calculator
Calculate gratuity amount as per Payment of Gratuity Act, 1972. Maximum exempt ₹20L.
Disclaimer
This calculator provides estimates for informational purposes only. Please consult a qualified tax advisor or accountant for accurate calculations and tax planning. Pathak Associates is not liable for any errors or decisions made based on this calculator.
Gratuity Calculation Guide
Calculate gratuity amount as per Payment of Gratuity Act, 1972.
Gratuity Amount
(Basic + DA) × 15/26 × Years of Service
Maximum Exemption
₹20 Lakhs exempt from tax as per current law
Taxable Amount
Amount exceeding ₹20L is added to income and taxed
Pro Tips
- Use basic salary component only (exclude allowances)
- DA is included in gratuity calculation
- Minimum employment period usually 5 years for coverage
- Gratuity is paid at retirement or job separation
Important Notes
• Gratuity Act applies to organizations with 10+ employees
• Maximum exemption: ₹20 Lakhs (u/s 10(10)(ii) of Income Tax Act)
• Minimum years required varies by industry/company policy
• Gratuity is not applicable for contractual employees (check your terms)
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