How much gratuity is tax-free?

Gratuity calculator

Gratuity due for your years of service.

Gratuity amount

₹2,88,462

₹2.88 lakh

Years counted: 10 years
Tax-free portion: ₹2,88,462
Taxable portion: ₹0

Covered employees get 15 days' salary for each year of service, where a month counts as 26 working days. Service of more than six months in the final year counts as a full year.

What this calculates

Gratuity is a lump sum your employer pays when you leave after five or more years of continuous service.

How it's calculated

Covered by the Act: G = n × b × 15 ÷ 26

Not covered: G = n × b × 15 ÷ 30 (completed years)

n: years of service (over six months rounds up, if covered)
b: last drawn monthly basic + DA

Results are illustrations based on the inputs you choose. Returns are not guaranteed and actual outcomes will vary. This is education, not advice.

Questions about this tool

For private-sector employees, up to ₹20 lakh over a career.