Gratuity Calculator
Post-5 Year Eligibility
Monthly Basic + Dearness Allowance
Eligible for Gratuity
Gratuity Amount
₹2,88,461.54
(Basic + DA) × 15/26 × Years of Service
Gratuity = (Basic + DA) × 15/26 × Years of Service. Max exempt gratuity = ₹20,00,000 under Section 10.
Eligibility requires minimum 5 years of continuous service. Consult your HR/CA.
How Gratuity Calculator Works in Your Browser
The ToolsForgess gratuity calculator computes the statutory gratuity amount payable to an employee upon resignation, retirement, or termination using the formula mandated under the Payment of Gratuity Act. Enter your last drawn monthly salary and total years of continuous service to receive the exact gratuity entitlement instantly. The engine applies the standard formula — fifteen days salary multiplied by years of service, divided by twenty-six — entirely in the browser. No salary data, employment dates, or personal information are transmitted to any server. The calculator also displays eligibility confirmation based on the minimum five-year continuous service threshold and provides a clear breakdown of how the final amount is derived. This tool serves HR professionals, employees planning retirement, and financial advisors estimating terminal benefits.
Key Features
- Apply the statutory gratuity formula using last drawn salary and years of service. The computation follows the Payment of Gratuity Act provisions with accurate day-count handling.
- Automatic eligibility check confirms whether the minimum five-year continuous service requirement is met. Ineligible scenarios are flagged with clear messaging.
- View the formula breakdown showing how fifteen days salary, years of service, and the divisor of twenty-six combine to produce the final gratuity amount. Understand every component of the calculation.
- Salary and service details remain local to your browser. No employment records, financial data, or personal identifiers are transmitted to any external server.
Frequently Asked Questions
What is the maximum gratuity amount exempt from tax?
How are partial years of service handled?
Does this apply to contract workers?
Is my employment data stored?
All data processing for Gratuity Calculator runs 100% locally in your browser using client-side JavaScript. No data is uploaded to any server.
Technical Specification
Gratuity Liability Computation & Eligibility Analysis
Overview
The ToolsForges Gratuity calculator computes the statutory gratuity amount payable to an employee who has completed five or more years of continuous service in an organization. Input the last drawn monthly salary, basic salary percentage, and years of service to receive an instantaneous gratuity computation based on the formula: Gratuity = Last Drawn Salary × Years of Service × 15 / 26. The calculator respects the statutory ceiling of twenty lakh rupees for private-sector employees.
Feature Specifications
- Statutory Formula ApplicationApply the government-prescribed gratuity formula accurately, using last drawn salary (basic plus DA) multiplied by completed years of service and the statutory factor of fifteen divided by twenty-six.
- Ceiling Limit EnforcementAutomatically cap the computed gratuity at the statutory ceiling of twenty lakh rupees for private-sector employees, reflecting the maximum tax-exempt gratuity payable under current law.
- Years of Service ValidationValidate that the employee has completed the minimum five years of continuous service required for statutory gratuity eligibility before computing the payout amount.
- Tax Exemption IndicationDisplay the tax-exempt portion of the gratuity amount based on current Income Tax rules, helping employees understand the net taxable component of their gratuity payout.
Architecture
The calculator uses React useState for input fields and applies the statutory gratuity formula with ceiling enforcement. Eligibility validation runs before computation. Results render in a metric card layout showing the computed amount and eligibility status.
Frequently Asked Questions
What is the gratuity formula?
The statutory formula is: Gratuity = Last Drawn Salary (Basic + DA) × Years of Service × 15 / 26. The factor 15/26 represents fifteen working days out of a twenty-six working day month.
Is gratuity taxable?
Gratuity received by government employees is fully exempt from tax. Private-sector employees receive tax exemption on the lower of: ten lakh rupees, actual gratuity received, or fifteen months' salary.
Can I receive gratuity before five years?
Statutory gratuity requires a minimum of five years of continuous service. However, gratuity may be payable earlier in cases of death or disablement under different computation rules.
Is my employment data stored?
No. All salary figures, service duration, and computed gratuity amounts are processed entirely within your browser. No employment or compensation data is transmitted externally.