Employees of private companies that offer EPF facilities are eligible to receive gratuity after completing 5 years of service. However, an employee can receive gratuity earlier if they are injured or disabled due to an accident or illness. Sensex India offers a free gratuity calculator that allows you to calculate how much your organization owes you. Gratuity payments are governed by the Payment of Gratuity Act 1972, and the amount is based on the last drawn salary and the number of years of service.

If you are eligible for gratuity, it's important to calculate how much you are entitled to. Our online gratuity calculator can help you with this.

At Sensex India, we use a proprietary formula for calculating gratuity, which is benchmarked against similar tools. The formula used in our online gratuity calculator is:

G = n*b*15/26

In this formula, the variables are defined as follows:

• N/n = The number of years you have worked in the organization
• B/b = Last drawn basic salary + Dearness Allowance (DA)
• G = Gratuity amount you are eligible to receive

For instance, if individual A has worked with an organization for 5 years, and their basic salary plus DA amounts to Rs. 30,000 per month, the gratuity will be calculated as 5*30000*15/26 = Rs. 86,538.46.

Note that, under the current laws:

• Your gratuity cannot exceed Rs. 10 Lakh in total. Any amount above this is classified as an ex gratia payment.
• If you have worked for, say 17 years and 6 months, the service period will be rounded to the nearest full year, i.e., 18 years.

According to the Payment of Gratuity Act 1972, you are eligible to receive gratuity under the following conditions:

• You are nearing retirement age.
• You have completed 5 years of continuous service with the same employer.
• You are not employed by another full-time employer.

In such situations, an online gratuity calculator is useful because:

• It helps you accurately determine the amount due to you.
• It saves you valuable time and resources.
• You can use it from the comfort of your home.
• It aids in long-term financial planning.

Follow these simple steps to use the gratuity calculator:

Step 1: Gather the essential details of your employment history.

Step 2: Enter the basic pay and dearness allowance amount. The gratuity value will be displayed instantly.

As a leader in financial services, Sensex India offers some of the most advanced tools in the market. Here are the reasons why our Gratuity Calculator is highly beneficial for you:

• We prioritize data security, ensuring our servers are safe and secure for your use.
• The calculator is user-friendly, and you don't need any technical expertise to use it.
• With Sensex India’s gratuity calculator, you can trust that the results are accurate.

The taxation of gratuity depends on the type of employee:

Gratuity received by a government employee is fully exempt from income tax.
For private-sector employees, the least of the following three amounts will be exempt from income tax, provided the employer is covered under the Payment of Gratuity Act:

• Rs. 20 lakh.
• The actual gratuity amount received.
• The eligible gratuity amount.

The maximum tax-exempt gratuity an employee can claim throughout their professional life cannot exceed Rs. 20 lakh.