Payment of Gratuity Act 1972
Gratuity Calculator: 15/26 Formula & Statutory Benefits
Calculate your statutory gratuity payout upon retirement, resignation, or termination after 5 or more years of continuous service. Compliant with the Payment of Gratuity Act 1972 and the ₹20,00,000 tax-free limit.
Gratuity Calculation Inputs
Statutory Formula: 15/26
₹
Only Basic Salary + DA are counted for gratuity (do not include HRA or special allowances).
Minimum 5 years required.
>6 months rounds up +1 yr.
Gratuity Entitlement
Total Gratuity Payable
₹3,37,500
Rounded Service Tenure:
9 Years
Formula Applied:
(15 × ₹65,000 × 9) / 26
Tax-Exempt Portion (Max ₹20 Lakh):
100% Tax Free
Taxable Gratuity:
₹0 (Fully Exempt)
Gratuity Formulas Explained
For Covered Establishments (10+ Employees)
Month is considered as 26 working days (excluding 4 Sundays):
Gratuity = (15 × Last Drawn Salary × Tenure) / 26
Any service period exceeding 6 months is rounded up to the next full year.
For Establishments Not Covered Under Act
Month is considered as 30 calendar days:
Gratuity = (15 × Last Drawn Salary × Tenure) / 30
Fractional months are not rounded up; only fully completed years are counted.
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