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.
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.