Gratuity Calculator — Govt & Private Employees
Official formula — correct divisor for central govt (+30) and private sector (+26)
Calculate Your Gratuity
Gratuity Amount
₹9,08,540
Taxable Portion
₹0
* Minimum qualifying service: 5 years (except death/disability). Central Govt gratuity is capped at ₹25 lakh (tax-free). Private sector cap is ₹20 lakh under Gratuity Act.
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Frequently Asked Questions
Gratuity = (Last drawn Basic Pay + DA) ÷ 30 × (completed 6-month periods of service ÷ 2). The maximum gratuity is ₹25 lakh. This differs from the Gratuity Act formula used in the private sector.
A minimum of 5 years of continuous service is required to be eligible for gratuity on resignation or death. At superannuation or voluntary retirement, gratuity is payable regardless of years of service.
Yes. Gratuity received by Central/State Govt employees is 100% tax-free with no upper limit. For private sector employees covered by the Gratuity Act, gratuity up to ₹20 lakh is tax-free.
The maximum gratuity ceiling for Central Govt employees was enhanced to ₹25 lakh effective from January 1, 2016 (7th CPC). For private sector, it is ₹20 lakh.