Calculate the gratuity amount you are eligible to receive after 5 years of continuous service.
Last drawn Basic + DA only
Minimum 5 years required
The formula used is (15 × Last Drawn Salary × Tenure) / 26.
This applies to employees covered under the Payment of Gratuity Act, 1972. The maximum tax-exempt limit is currently ₹20 Lakhs.
Gratuity is a monetary benefit given by an employer to an employee for services rendered to the organization. It is usually paid at the time of retirement or resignation.
As per the Payment of Gratuity Act, 1972, an employee is eligible for gratuity if they have completed 5 years of continuous service.
Gratuity = (15 * Last Drawn Salary * Tenure) / 26
Where 'Last Drawn Salary' includes Basic Pay + Dearness Allowance (DA).