Gratuity received is exempt from tax up to limits specified under the Income Tax Act; amounts beyond the limit may be taxable. Consult a tax advisor for your specific case.

Is an employee eligible for gratuity before 5 years?

Generally, gratuity is payable after 5 years of continuous service, except in cases of death or disability.

Gratuity Calculator | Texora HRMS

Free Tool

Gratuity Calculator

Estimate the gratuity payable to an employee based on their last drawn salary and years of service.

Last drawn Basic + DA (monthly)

Years of service (completed)

Result

Formula used(Basic+DA) × 15 × Years / 26

Estimated gratuity₹1,21,154

FAQ

Gratuity — frequently asked

For employees covered under the Payment of Gratuity Act, 1972: Gratuity = (Last drawn Basic + DA) × 15 × Years of Service / 26.

Let payroll calculate this automatically

Texora HRMS computes gratuity, full-and-final settlements, and statutory deductions inside every payroll run.

Book My Free Demo

Gratuity Calculator

Result

Gratuity — frequently asked

Let payroll calculate this automatically

Preparing your workspace

Gratuity Calculator

Result

Gratuity — frequently asked

Let payroll calculate this automatically