Gratuity Calculator
Gratuity Calculator
A user-friendly tool to compute your gratuity amount for free easily.
Frequently Asked Questions
Note: The above information is subject to change as per the tax laws and provisions and is only for general information purposes. It is advisable to consult with a tax expert for specific tax-related queries.
- Sudden death or disability
- Retirement
- Superannuation
- They are resigning after having completed 5 or more years in a single organisation;
- They have reached the retirement age;
- They have suffered disability during/due to work; or
- They are eligible for superannuation in an organisation.
- For a Government employee, the entire gratuity amount is exempted from tax.
For an employee in the private sector who is covered under the Gratuity Act of 1972, the least of the following is exempted from tax:
- The total amount of gratuity received ₹20 Lakhs
- 15 days salary (based on the last drawn salary) for every completed year of service. More than 6 months of service in a year, with 26 days of work per month, counts as a year for this calculation.
For an employee in the private sector who is not covered under the Gratuity Act of 1972, the least of the following is exempted from tax:
- The total amount of gratuity received ₹20 Lakhs
- Half-month salary (based on the last 10 months' salary) for every completed year of service.
The time taken to release gratuity in India depends on various factors such as the employee's length of service, company policies, and government regulations.
As per the Payment of Gratuity Act, 1972, gratuity is payable to an employee after a continuous service of at least five years. Once the employee meets the eligibility criteria, the gratuity is payable within 30 days from the date of application.
However, some companies may have their own policies that dictate the time frame for releasing gratuity to employees. It is always best to check with the HR department or the company's policy on gratuity for specific information.
In some cases, if the company is facing financial difficulties or if there are disputes related to gratuity, the release of gratuity may get delayed. In such cases, employees can approach the appropriate government authorities for assistance.