5-in-1 Online Gratuity Calculator
Gratuity is a monetary benefit paid by an employer to employees for continuous service under the Payment of Gratuity Act, 1972. This 5-in-1 Gratuity Calculator helps employees check minimum service eligibility, calculate precise lump-sum payouts, estimate tax exemptions, and project combined post-retirement benefits.
How the 5 Calculator Modes Work
1. Gratuity Calculator
Computes the total lump-sum gratuity payout using your latest basic salary, Dearness Allowance (DA), and total completed years of service.
2. Eligibility
Checks whether an employee satisfies the mandatory 5-year continuous service rule required to claim statutory gratuity payouts.
3. Gratuity Amount
Provides a quick payout estimation by applying the standard statutory 15/26 formula against monthly base pay components.
4. Tax
Determines taxable and tax-exempt gratuity components based on statutory income tax limits (up to ₹20 Lakhs for covered private-sector employees).
5. Retirement Benefits
Evaluates combined Year-1 post-retirement liquidity by combining one-time gratuity lump sums with projected annual pension payouts.
Gratuity Mathematical Formulas
Gratuity Formula (Not Covered under Act): $Gratuity = \frac{Last\ Drawn\ (Basic + DA) \times 15 \times N}{30}$
Tax Exempt Portion: $Exempt = \min(Actual\ Gratuity,\ Statutory\ Limit,\ Formula\ Amount)$
Where N = Completed Years of Service (fraction above 6 months rounded up)
Frequently Asked Questions (FAQs)
Yes, a minimum of 5 continuous years of service with the same employer is mandatory. However, this condition is waived in the event of death or disablement of the employee.
For government employees, gratuity is fully tax-exempt. For non-government employees covered under the Gratuity Act, it is tax-free up to a statutory cap of ₹20 Lakhs.