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Note: Any period above 6 months counts as a full year.
Formula: (15 * Last Basic * Tenure) / 26
What is Gratuity?
Gratuity is a statutory benefit paid by an employer to an employee as a token of appreciation for their long and meritorious service. In India, it is governed by the Payment of Gratuity Act, 1972.
Eligibility Criteria
- Completion of at least 5 years of continuous service with the same employer.
- Applicable to establishments with 10 or more employees.
- The 5-year rule is waived in case of death or disablement of the employee.
FAQs
Is Gratuity taxable?
For non-government employees, gratuity is exempt from tax up to a maximum limit of ₹20 Lakhs in a lifetime.
How is Tenure rounded?
If you work for 5 years and 7 months, it is rounded to 6 years. If you work for 5 years and 5 months, it is considered 5 years.
100% Private & Secure
ToolNGame is designed with a "Privacy First" philosophy. This Gratuity Calculator runs entirely in your browser using local JavaScript. Your files and data are never uploaded to our servers, ensuring your sensitive information stays exactly where it belongs—on your device.
How to use Gratuity Calculator?
Enter monthly salary
Input your last drawn basic salary (from payslip). Gratuity is typically calculated on basic salary, not total CTC.
Add years of service
Enter completed years of tenure at your company. Gratuity applies after 5+ years of service. Partial years don't count.
Get gratuity payout
The calculator shows statutory gratuity: (Salary × Service Years). Actual payout may vary by industry/company policy. Verify with HR.
Frequently Asked Questions
What is gratuity?
Gratuity is a lump-sum payment to employees on retirement or termination after 5+ years of service. Statutory benefit in India (and some other countries). Recognizes loyalty and service.
How is gratuity calculated?
Standard formula: (Last Drawn Basic Salary × Service Years) / 26 × 15. OR simplied: (Last Drawn Basic × Service Years). Different formulas apply; verify your contract.
Is gratuity compulsory?
In India: yes, for 5+ years service. Some exemptions: government employees (different pension), companies <10 employees. Check labor laws in your region.
Can I get gratuity if I resign?
In India: gratuity is not payable if you resign (only on retirement or termination without cause). If terminated for cause, you may not get gratuity. Check labor law.
What counts as "completed service years"?
Full years only. 5 years 11 months = 5 years gratuity (not 6). Gaps in service may affect calculation. Verify exact policy with HR.
Is gratuity taxable?
Yes. Gratuity is taxable income. But tax exemption limits apply (₹10 lakh in India under Section 10(10)(ii)). Amounts above exemption are taxed at slab rates.
Does gratuity affect my PF?
No. Gratuity and PF are separate. PF is your retirement corpus. Gratuity is additional. You get both on exit (after 5 years service).
How long to receive gratuity after exit?
Should be paid within 30 days of exit. Delays are common; follow up with HR. Request gratuity payment letter and ensure it's part of final settlement.
Why choose ToolNGame for Gratuity Calculator?
Privacy-First Architecture
Most online utilities require you to upload sensitive data to their servers for processing. At ToolNGame, we've architected our Gratuity Calculator to run entirely within your web browser. This means your data never leaves your computer, providing a level of security that traditional cloud-based tools simply cannot match.
Unmatched Performance
By leveraging the power of modern Web APIs and optimized JavaScript, our tools deliver results instantly. There's no waiting for server responses or file uploads. Whether you're a developer needing a quick code fix or a student calculating grades, ToolNGame ensures your workflow remains uninterrupted.
No Ads, No Tracking, No Fluff
We believe that the best tools are the ones that get out of your way. That's why ToolNGame is built with a minimalist, high-performance interface. No intrusive pop-ups, no tracking scripts, and no unnecessary bloat—just the powerful utilities you need, exactly when you need them.
A Growing Ecosystem
The Gratuity Calculator is just one part of our comprehensive suite. From advanced PDF manipulation and image compression to coding beautifiers and financial calculators, ToolNGame is designed to be the ultimate bookmark for productivity. We constantly update our algorithms to ensure the highest accuracy and compatibility.
Technical Specifications & Reliability
Our platform is built using a modern stack focused on client-side efficiency. By utilizing Vanilla JavaScript instead of heavy frameworks, we ensure that every tool is lightweight and compatible with all modern browsers, including Chrome, Firefox, Safari, and Edge. This commitment to technical excellence is why thousands of professionals trust ToolNGame every day for their mission-critical tasks.