Gratuity Calculator

Calculate your gratuity amount based on your salary and years of service. Get instant estimates with tax implications and investment guidance.

Calculate Your Gratuity

Gratuity Calculation

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Enter your details to calculate gratuity

Understanding Gratuity

Gratuity is a payment from an employer to an employee for services rendered, typically given to those with five or more years of service. It is governed by the Payment of Gratuity Act, 1972 and serves as a retirement benefit.

📋 Eligibility Criteria

  • • Minimum 5 years of continuous service
  • • Superannuation or retirement
  • • Resignation after 5 years
  • • Death or disablement due to accident/disease

🧮 Calculation Methods

Covered under Act:
Gratuity = (Years × Salary × 15) ÷ 26
Not covered under Act:
Gratuity = (15 × Salary × Years) ÷ 30

Tax Treatment of Gratuity

Tax Exemption Rules

Government Employees: Full gratuity amount is tax-exempt
Private Employees (Covered under Act): Least of the following is exempt:
  • • ₹20 lakh (maximum limit)
  • • Actual gratuity received
  • • Eligible gratuity amount

Investment Options for Gratuity

🏦 Fixed Deposits

Low-risk investment with guaranteed returns and capital preservation.

📈 Public Provident Fund

Tax-efficient long-term investment with 15-year lock-in period.

💼 Employee Provident Fund

Transfer gratuity to EPF for tax benefits and retirement savings.

🎯 National Pension System

Voluntary retirement savings with tax benefits and flexible investment options.

📊 Mutual Funds

Diversified investment options in equity and debt funds for higher returns.

🏠 Real Estate

Direct property purchase or REITs for long-term wealth building.

Need Professional Financial Planning?

Our expert financial advisors can help you optimize your gratuity investment, create comprehensive retirement strategies, and plan for your financial future.