FinuhaIndia

Gratuity Calculator

Determine your eligible gratuity payout after completing 5 or more continuous years of service.

Estimated Gratuity Payout

₹2,01,923

This payout is 100% tax-free up to a statutory cap of ₹20 Lakhs.
Formula: (15 × ₹50,000 × 7 Yrs) / 26

How This is Calculated (Formula Transparency)

Gratuity = (15 * Last Drawn Basic Salary * Tenure in Years) / 26 (for companies covered under Gratuity Act).

Concept: Gratuity = (15 * ₹80,000 * 10) / 26 = ₹4,61,538.

Worked Example Case Study

Scenario: Salaried individual with a last drawn basic salary of ₹80,000 and 10 years of service.

Detailed Calculation: Gratuity = (15 * ₹80,000 * 10) / 26 = ₹4,61,538.

Result Outcome: Gratuity Payout: ₹4,61,538 (Tax-Free).

Assumptions & Rules

  • Employee has completed at least 5 years of continuous service.
  • Salary refers to (Basic + Dearness Allowance).
  • Maximum tax-free gratuity is ₹20 Lakhs.
  • Calculations are compliant with laws and rates as of FY 2025-26 (AY 2026-27).

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Frequently Asked Questions