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About This Calculation
For a last drawn salary of ₹2,00,000 and a service period of 10 years, your gratuity is calculated as per the 1972 Act.
Gratuity is a defined benefit plan and is one of the many retirement benefits offered by employers in India.
The Formula
Gratuity = (Last drawn salary × 15 × Years of service) / 26. Salary here means Basic + Dearness Allowance (DA).
Frequently Asked Questions
Yes, 5 years of continuous service is generally mandatory, except in case of death or disablement.
It assumes 15 days of salary for every year of service, where a month is considered to have 26 working days.
For private sector employees, gratuity up to ₹20 lakh is exempt from income tax.
Results are for informational and educational purposes only. This is not financial advice. Consult a professional advisor before making financial decisions.