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Home/ Calculators/ Gratuity Calculator
GRATUITY.ENGINE v1.0 — Employee Benefit Matrix Active

Gratuity Calculator

Calculate your gratuity payout as per the Payment of Gratuity Act, 1972. Instant estimate based on last drawn salary and years of service.

As per Gratuity Act Private & Govt Tax Exemption Instant Result
Gratuity Amount

₹0

Estimated gratuity payable to you

Monthly Salary

₹0

Basic + DA considered

Years of Service

0 Yrs

Total employment tenure

Tax Exemption

₹0

Tax-free up to ₹20 Lakh

Taxable Amount

₹0

Amount above exemption limit

Gratuity Amount Payable

₹0

Based on last drawn salary and total service period

Service: 10 Years 6 Months
Tax-Free: ₹0
Taxable: ₹0
Gratuity Amount

₹0

Total payable gratuity

Tax Exempt

₹0

Up to ₹20 Lakh limit

Monthly Salary

₹0

Basic + DA (last drawn)

Effective Years

0

Rounded service tenure

Tax-Free% 100%
Tax Exempt ₹0
Taxable ₹0
Gratuity Breakdown
Monthly Salary (Basic+DA) ₹0
Years of Service 0
Extra Months 0
Effective Years (rounded) 0
Formula Used
Gratuity Amount ₹0
Tax Exempt (max ₹20L) ₹0
Taxable Amount ₹0

Minimum Service

You must have completed at least 5 continuous years of service with the same employer to be eligible for gratuity.

Calculation Formula

For covered employees: (15 × Last Salary × Years) ÷ 26. For non-covered: (15 × Last Salary × Years) ÷ 30.

Tax Exemption

Gratuity up to ₹20 Lakh is fully tax-exempt under Section 10(10) of the Income Tax Act for covered employees.

Gratuity Growth Over Service Years

Gratuity Value

What is Gratuity?

Gratuity is a retirement benefit paid by an employer to an employee for long and meritorious service. It is governed by the Payment of Gratuity Act, 1972 in India.

Who is Eligible?

Any employee who has completed 5 or more years of continuous service with an employer is eligible for gratuity — on resignation, retirement, death, or disablement.

When is Gratuity Paid?

Gratuity is payable upon retirement, resignation after 5 years, death or disablement due to accident or illness, and must be paid within 30 days by the employer.

Frequently Asked Questions

The Payment of Gratuity Act applies to organisations with 10 or more employees. Once covered, the Act continues to apply even if the headcount falls below 10. Private schools and other establishments may be covered under different state rules.
Generally, you are not entitled to gratuity if you resign before completing 5 years of continuous service. However, in case of death or disablement, gratuity is paid regardless of the service period.
Yes. An employer can forfeit gratuity if the employee is terminated due to misconduct causing damage or loss to the company. However, the forfeiture can only be partial (to the extent of damage) or full in cases of moral turpitude.
No. Gratuity, bonus, and PF are three distinct statutory benefits. Gratuity is a one-time long-service reward. PF is a monthly retirement saving contribution. Bonus is a profit-sharing payment made annually under the Payment of Bonus Act.

Plan Your Retirement Benefits Better

Talk to a VCULP advisor to understand how gratuity, PF, NPS and other retirement benefits work together for a secure financial future.

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