Gratuity Calculator

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Gratuity can be claimed by any employee of a Private company having an EPF structure after 5 years of service. Nevertheless, if an accident, injury, or disease renders the employee disabled before they have attained the 5-year mark, gratuity is payable to them. Here, we provide a free Gratuity calculator to calculate the amount you owe your organisation. In other words, the allowance would be governed by the Payment of Gratuity Act 1972, along with the amount of your last drawn salary and the total years in which you worked as an employee for the same company. Do you think that you are entitled to gratuity? Use our online calculator to find out.

Gratuity Calculation Formula

Our uses a formula Benchmarked with other peer group offerings. Here is the formula used in our online gratuity calculator It is :

G = n*b*15/26

In the formula, the values are the following.

In the formula, the values are the following.

N/n The number of years you have worked in the concerned organization

B/b Last drawn basic salary plus Dearness Allowance (DA)

G Gratuity amount you are eligible for

For instance, individual A has been working with an organization for 5 years, and their gross salary plus DA totals Rs. 30,000 per month. Then, you can claim 5 * 30000* 15/26 = Rs. 86,538.46 in gratuity.

Note that under the existing laws.

• The maximum gratuity you can receive is up to Rs. 10 Lakh. Above this, if the gratuity amount exceeds, it will be ex gratia payment.
• 17 years & 6 months of service will be rounded up to the nearest year (so it will be counted as 18 years)

How Can a Gratuity Calculator Help You?

You are eligible under the Payment of Gratuity Act 1972 to get your gratuity amount granted.

• You are pretty much at your super time.
• You have consistently worked for the same organization for at least 5 years continuously.
• You do not have any other full-time employer.

If this is the case, then the Gratuity Calculator online in India

• It tells you exactly the amount you owe.
• Saves your time (and other resources)
• You can leverage it from the comfort of your own home.
• Good for long-term financial planning,

How to Use Gratuity Calculator?

Use the gratuity calculator with these easy steps.

Step 1: Always remember essential information about your Trailing Employment.

Step 2: Enter the Sum of Basic pay + dearness allowance, and the gratuity will be reflected in less than a second. 

Advantages of Using Gratuity Calculator

Market leader in financial, you get the highest level of tools from us à la carte as We. These are the best features of our Gratuity Calculator for you.

• Data security is key, above all. Safe and Secure for the use of our servers.
• You dont need to be a mathematical wizard for our calculator.
• mysipcalculators gratuity calculator never goes wrong. You can rest assured with our product.

Taxation Rules for Gratuity

Taxes on the gratuity amount are of the following type for you,

Income tax on gratuity amounts for government employees is chargeable to income tax.

For private sector employees where the employer is covered by the Payment of Gratuity Act, exempt from income tax up to the lowest of the following three amounts

• Rs 20 lakh.
• The actual gratuity amount received.
• The eligible gratuity.

An employee is free to claim a total of Rs 20 lakh as a maximum tax-exempt gratuity in his entire professional life.