Gratuity Calculator
Calculate employee gratuity based on service years and salary
Service Details
Companies with 10+ employees are typically covered
Salary Details
Tax Details
💼 Gratuity Rules
- • Minimum 5 years of service required (waived for death/disability)
- • Formula: (Last Salary × 15 × Years) ÷ 26 (covered companies)
- • Maximum exemption: ₹20 lakhs
- • Payment within 30 days of application
- • 10% interest on delayed payment
Gratuity Eligibility
Service Period:15 years 6 months
Status:
Compliance Checklist
Payment Process
Application Deadline:
Payment Deadline:
Interest on Delay:
Processing Time:
Gratuity Growth Analysis
| Service Years | Gratuity Amount | Tax Exemption | Taxable Amount | Tax | Net Amount | Monthly Equivalent |
|---|
Scenario Comparison
Tax Optimization Strategies
Gratuity Planning Guide
Maximizing Gratuity
- • Complete minimum 5 years of service
- • Negotiate salary structure to include basic + DA
- • Plan resignation timing for tax optimization
- • Maintain proper service records
- • Submit nomination form to HR
Important Points
- • Gratuity is calculated on last drawn salary
- • Maximum exemption is ₹20 lakhs
- • Employer must pay within 30 days
- • Interest charged on delayed payment
- • Different rules for covered vs non-covered companies