Free tool · Rules updated 28 Sep 2026
Gratuity Calculator — Amount & Tax Exemption
For employees covered by the Payment of Gratuity Act: 15 days' last salary × years of service ÷ 26. Not covered: 15 days × average salary of the last 10 months × completed years ÷ 30. The tax-free limit for private employees is ₹20 lakh.
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Gratuity Calculator — common questions
How are years of service rounded?
Under the Act, a part year of more than 6 months counts as a full year. For employees not covered by the Act, only completed years count.
Is gratuity fully tax-free for government employees?
Yes, gratuity received by central/state government employees is fully exempt.
This tool gives an estimate based on the rules shown. Your actual tax depends on your full details — our expert confirms the final figure before filing.
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