Gratuity per the Payment of Gratuity Act — 15 days' salary for every completed year (15/26 formula), after 5 years of service, capped at ₹20 lakh.
All figures in the local currency. Gratuity is an estimate.
| Service | Entitlement |
|---|---|
| Formula | (last salary × 15 × years) ÷ 26 |
| Salary | Basic + dearness allowance |
| Eligibility | 5 years of continuous service |
| Year rounding | Over 6 months rounds up |
| Cap | ₹20,00,000 (20 lakh) |
Enter basic + DA as the salary. Years round up if the extra months exceed 6. Tax-free up to ₹20 lakh. Source: Payment of Gratuity Act.
Last drawn salary (basic + dearness allowance) × 15 × completed years ÷ 26. You must complete five years, and a part-year over six months rounds up to a full year.
Five years of continuous service, except in cases of death or disablement where the five-year rule is waived.
Yes — gratuity is capped and tax-exempt up to ₹20,00,000 (20 lakh).
The last drawn basic salary plus dearness allowance — not the full CTC.