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Find your gratuity, check if you are eligible and see how much is tax-free.
Last updated:
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Gratuity = 15/26 × last monthly Basic + DA × years of service
| Basic + DA a month | Years | Gratuity |
|---|---|---|
| Rs 25,000 | 5 | Rs 72,115 |
| Rs 40,000 | 7 | Rs 1,61,538 |
| Rs 50,000 | 10 | Rs 2,88,462 |
| Rs 75,000 | 12 | Rs 5,19,231 |
| Rs 1,00,000 | 20 | Rs 11,53,846 |
Source: Business Today, 10 Apr 2026, on the Code on Social Security.
Analysis: LiveLaw. The calculator above checks this from your dates.
| Employee | Tax-free |
|---|---|
| Government | Full amount |
| Private, covered by the Act | Up to ₹20 lakh in your whole career |
| Private, not covered | Half a month's average pay × completed years, up to ₹20 lakh |
Anything above the limit is added to your income and taxed at your slab rate.
Gratuity = 15/26 × last monthly Basic + DA × years of service. For Rs 40,000 Basic + DA and 7 years: 15/26 × 40,000 × 7 = Rs 1,61,538.
Several High Courts (Madras, Kerala, Delhi) have counted 4 years + 240 days (190 days in a 5-day week) as 5 years. The Supreme Court has not settled it, so some employers still ask for 5 full years.
Yes. Under the new labour codes, from 21 November 2025, fixed-term employees get gratuity after 1 year, for the exact time worked.
Yes. A part year of more than 6 months counts as a full year. 6 years 6 months counts as 6 years.
On your last monthly Basic + DA, not your CTC. If allowances are more than half your pay, the extra is added back to wages under the new labour codes.
Rs 20 lakh in your whole career for private employees. Government employees pay no tax on gratuity.
No. It is paid once, when you leave or retire after becoming eligible. Many companies show it inside CTC, so CTC is higher than what you take home.
The employer must pay within 30 days of it becoming due, usually with your full and final settlement.
Only if you are not eligible, or it can be forfeited for proven misconduct that caused loss. If it is wrongly held back, write to HR and then the labour office.
Last month ki Basic + DA ko 15 se guna karo, 26 se bhaag do, aur saal ki sankhya se guna karo. 6 mahine se zyada ka hissa poora saal gina jata hai.