Gratuity Calculator – Complete Guide

Gratuity is a one-time payment given to employees as a reward for long service. Understanding gratuity calculation helps in better financial planning. Read more

What is Gratuity?

Gratuity is paid after completing minimum 5 years of continuous service. Read more

Formula

Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26 Read more

Example

Salary: ₹30,000, Service: 20 years Read more

Gratuity = (30,000 × 15 × 20) / 26 = ₹3,46,153 Read more

Eligibility Rules

• Minimum 5 years service
• Applicable to government and private employees

Important Notes

• Tax exemption available under rules
• Maximum limit as per government policy

Read more helpful guides on our blog page.

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