Gratuity calculator
Estimate the gratuity you'll receive when you leave or retire, and how much of it is tax-free.
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Detailed breakdown
How it's calculated
For employers covered by the Payment of Gratuity Act, gratuity is 15 days' pay for each year of service, using 26 working days a month, and any part-year of more than 6 months counts as a full year. For others, it uses 30 days a month and only completed years. Under the Act, gratuity is capped at ₹20 lakh, and up to ₹20 lakh is tax-free for private-sector employees.
Common questions
When am I eligible?
Usually after 5 years of continuous service with the same employer. Fixed-term employees qualify after 1 year under the labour codes in force since November 2025. The 5-year condition doesn't apply in case of death or disability.
Is gratuity for government employees taxed?
Gratuity received by central and state government employees is fully exempt.
Last reviewed October 2026 · How we calculate · About Selvayana
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