Gratuity Calculator – Calculate Gratuity Amount Based on Salary

Use our Gratuity Calculator to calculate the gratuity amount you are eligible to receive after completing your years of service. This calculator helps you understand how gratuity fits into your overall salary structure, in-hand salary, and take home salary.

Whether you are using a salary calculator, CTC to in-hand salary calculator, or monthly salary calculator India, gratuity is an important long-term benefit that adds to your total earnings.

What is Gratuity?

Gratuity is a lump-sum amount paid by an employer to an employee as a token of appreciation for long and continuous service. In India, gratuity is governed by the Payment of Gratuity Act, 1972.

An employee becomes eligible for gratuity after completing at least 5 years of continuous service, except in cases of death or disability.

Gratuity Calculator – How Gratuity is Calculated

Gratuity is calculated based on the last drawn Basic Pay and Dearness Allowance (DA). Our gratuity calculator provides quick and accurate results.

Gratuity Amount = (Last Drawn Basic + DA) × 15 × Years of Service ÷ 26
  

This amount is paid as a lump sum and does not directly affect your monthly salary, but it significantly increases your overall employment benefits.

Impact of Gratuity on In-Hand Salary

Gratuity is not deducted from your monthly salary, but it forms part of your CTC. When using an in hand salary calculator or CTC to in-hand salary calculator, gratuity is usually shown separately as a long-term benefit.

Since gratuity is received at the time of leaving the job or retirement, it does not impact TDS on salary on a monthly basis.

Gratuity Taxation in India

Gratuity received by government employees is fully exempt from tax. For private sector employees, gratuity is tax-free up to a prescribed limit as per Income Tax rules.

This makes gratuity an important component when calculating in hand salary after tax and post-retirement income.

Gratuity Calculator for 7th CPC Employees

Government employees under the 7th Pay Commission can use this tool as a 7th pay commission salary calculator to estimate gratuity based on revised basic pay and DA.

It helps employees clearly understand retirement benefits along with pension and other allowances.

Gratuity Calculator for 8th Pay Commission

Employees preparing for future salary revisions can use this calculator as an 8th pay commission salary calculator to estimate higher gratuity benefits based on expected basic pay changes.

It is also helpful for users searching for an 8th pay commission salary calculator in Hindi to understand retirement planning in advance.

Gratuity vs PF – Key Difference

• Gratuity: Lump-sum benefit paid by employer after service completion
• PF: Monthly savings contributed by employee and employer
• Gratuity depends on years of service, while PF grows through contributions

Both PF and gratuity together form a strong retirement safety net.

Frequently Asked Questions (FAQs)

Is gratuity part of monthly salary?

No, gratuity is not part of your monthly salary. It is a long-term benefit shown in CTC but paid at the time of leaving the job or retirement.

Is gratuity taxable?

Gratuity is fully tax-free for government employees and partially exempt for private employees as per income tax rules.

Can gratuity be calculated using a salary calculator?

Yes, gratuity works alongside a salary calculator India to show complete compensation details.

Why Use Our Gratuity Calculator?

• Accurate calculation as per Indian labour laws
• Helpful for retirement and job-change planning
• Works with monthly salary calculator tools
• Ideal for 7th & 8th CPC salary estimation

Use our Gratuity Calculator India to plan your future, understand long-term benefits, and get a complete picture of your salary and take home salary.