🎁 Gratuity Calculator

Gratuity = (Basic + DA) × Years of Service × 15/26 Where: 15 = 15 days pay per year of service 26 = working days in a month (26 days) Years = completed years (6+ months in last year counts as 1 full year) Maximum Gratuity (statutory cap) = ₹20,00,000 Example: Basic+DA ₹50,000/mo, 8 years 7 months Completed years = 9 (7 months counts as full year) Gratuity = 50,000 × 9 × 15/26 = 50,000 × 9 × 0.5769 = ₹2,59,615

Gratuity = (Basic + DA) × Years of Service × 15/30 Where: 15 = 15 days pay per year 30 = calendar days in a month (30 days) Years = completed years (no rounding up for partial last year) Example: Basic+DA ₹50,000, 8 years 7 months Completed years = 8 (partial year NOT counted) Gratuity = 50,000 × 8 × 15/30 = 50,000 × 8 × 0.50 = ₹2,00,000

Minimum service: 5 continuous years (except death/disability) Death/disability: gratuity payable regardless of years Resignation: minimum 5 years required Retirement: minimum 5 years required Organisation threshold: 10+ employees (once crossed, Act applies even if headcount later falls) Maximum statutory gratuity: ₹20,00,000 Employers can pay more voluntarily Tax exemption (Sec 10(10)): Government employees: entire amount tax-free Private sector (covered): exempt up to ₹20,00,000 Private sector (non-covered): exempt up to ₹20,00,000 Amount above ₹20,00,000 is taxable