Payment of Gratuity Act 1972

Gratuity Calculator India

Calculate end-of-service gratuity as per Indian law using 15/26 formula. Instant calculation with tax treatment and eligibility check.

Employment Details

DA is included if it forms part of salary for retirement benefits

If months ≥ 6, they count as 1 full year. If months < 6, they're ignored.

Reason for Exit

Not Eligible for Gratuity

You need minimum 5 completed years of continuous service to be eligible for gratuity (except in case of death, disability, or termination by employer).

Your service: 0 completed years
Required: 5 years

Gratuity Rules & Eligibility

Eligibility Criteria

Minimum 5 years continuous service
Applicable to establishments with 10+ employees
No minimum service for death/disability
No minimum for employer-initiated termination

When Gratuity is NOT Payable

Termination due to misconduct/moral turpitude
Resignation before completing 5 years
Dismissal for willful damage to property
Violence, riotous behavior at workplace

Payment Timeline

Must be paid within 30 days of separation
Simple interest if delayed beyond 30 days
Nominee/legal heir receives in case of death

Maximum Limits

Maximum Gratuity: ₹20,00,000
Tax Exemption: ₹20,00,000 (private)
Calculation Basis: Basic + DA only

Automate Gratuity Calculations for Your Team

Our HRMS automatically tracks service years, calculates gratuity, maintains gratuity register, and generates Form I & Form J as per Payment of Gratuity Act 1972.