Gratuity Calculator for Government Employees
Calculate your gratuity as per the Payment of Gratuity Act, 1972
Enter Gratuity Details
Gratuity Rules for Government Employees
This calculator helps government employees estimate their gratuity benefits under the Payment of Gratuity Act, 1972.
What is Gratuity?
Gratuity is a lump-sum payment made to employees upon retirement or resignation after completing at least 5 years of continuous service, as a reward for long service.
Calculation Formula
Gratuity = (Last Drawn Basic Pay + Dearness Allowance) × 15/26 × Number of Years of Service (rounded).
Rounding Rules
- Service periods of 6 months or more are rounded up to the next year.
- Service periods less than 6 months are ignored.
- Example: 20 years 8 months = 21 years; 20 years 4 months = 20 years.
Tax Exemption
For government employees, the entire gratuity amount is exempt from income tax under Section 10(10)(i) of the Income Tax Act, 1961.
How to Use This Calculator
- Enter your last drawn monthly basic pay.
- Input the current Dearness Allowance rate.
- Enter total years of service (including partial years).
- Select your type of government service.
- Click "Calculate Gratuity".
Frequently Asked Questions
Who is eligible for gratuity?
Employees with 5 or more years of continuous service are eligible.
Is gratuity taxable for government employees?
No, gratuity is fully exempt from tax for government employees.
What is the maximum gratuity limit?
The maximum gratuity amount is capped at ₹20 lakh as per the 7th CPC.
Where can I find official rules?
Refer to the Payment of Gratuity Act, 1972 and Pensioners' Portal.
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