Gratuity Calculator
by Zoho Payroll- Sudden death or disability
- Retirement
- Superannuation
- They are resigning after having completed 5 or more years in a single organisation;
- They have reached the retirement age;
- They have suffered disability during/due to work; or
- They are eligible for superannuation in an organisation.
- For a Government employee, the entire gratuity amount is exempted from tax.
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For an employee in the private sector who is covered under the Gratuity Act of 1972, the least of the following is exempted from tax:
- Total amount of gratuity received
- ₹20 Lakhs
- 15 days salary (based on the last drawn salary) for every completed year of service. More than 6 months of service in a year, with 26 days of work per month, counts as a year for this calculation.
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For an employee in the private sector who is not covered under the Gratuity Act of 1972, the least of the following is exempted from tax:
- Total amount of gratuity received
- ₹20 Lakhs
- Half-month salary (based on the last 10 months salary) for every completed year of service.