Gratuity Calculation Summary
| Last Drawn Salary (Basic + DA) | ₹1,00,000/month |
| Years of Service | 5 |
| Total Years for Calculation | 5 |
| Eligibility | Eligible |
| Gratuity Amount | ₹2,88,462 |
| Tax-Free Amount | ₹2,88,462 |
| Taxable Amount | Nil |
Formula: (₹100,000 × 5 × 15) ÷ 26 = ₹2,88,462. Maximum gratuity under the Act is ₹20 Lakhs.
Gratuity at Different Years of Service
How gratuity grows with each year you stay in the same company:
| Years of Service | Eligible? | Gratuity Amount | Tax-Free | Taxable |
|---|---|---|---|---|
| 5 years | Yes | ₹2,88,462 | ₹2,88,462 | Nil |
| 7 years | Yes | ₹4,03,846 | ₹4,03,846 | Nil |
| 10 years | Yes | ₹5,76,923 | ₹5,76,923 | Nil |
| 15 years | Yes | ₹8,65,385 | ₹8,65,385 | Nil |
| 20 years | Yes | ₹11,53,846 | ₹11,53,846 | Nil |
| 25 years | Yes | ₹14,42,308 | ₹14,42,308 | Nil |
Calculate Your Exact Gratuity
Enter your actual last drawn salary and years of service to get your gratuity amount.
Use Gratuity CalculatorFrequently Asked Questions
How much gratuity will I get for ₹1 Lakh salary after 5 years?
With a last drawn basic + DA of ₹1 Lakh/month after 5 years of service, your gratuity is ₹2,88,462. Formula: (Salary × Years × 15) / 26 = (₹100,000 × 5 × 15) / 26.
What is the minimum service required to get gratuity?
You must complete at least 5 continuous years of service with the same employer. However, 4 years and 6+ months counts as 5 years for gratuity calculation purposes. Gratuity is also payable on death or disability regardless of tenure.
Is gratuity taxable in India?
Gratuity up to ₹20 lakhs is completely tax-free for private sector employees under the Payment of Gratuity Act 1972 (post-2018 amendment). Your gratuity of ₹2,88,462 is fully tax-free (below ₹20 lakh). Government employees have different (more generous) rules.
Can my employer deny gratuity?
No. Gratuity is a statutory right under the Payment of Gratuity Act 1972. If an employer refuses, you can file a complaint with the Controlling Authority (Labour Commissioner). Employers who fail to pay gratuity within 30 days of it becoming due are liable to pay interest and penalties.
How does the gratuity formula work?
The formula is: (Last Drawn Salary × Years of Service × 15) / 26. Here, '15' represents 15 days' salary per year, and '26' represents the working days in a month. If your years include 6+ extra months, it rounds up. The maximum payable gratuity under the Act is ₹20 lakhs.