Gratuity Formula
Covered: Gratuity = (Basic+DA / 26) × 15 × Years. Non-covered: Gratuity = (Basic+DA / 30) × 15 × Years. Tax-free limit: ₹20 lakh for covered employees (raised from ₹10L in 2018).
Each year of service counts as 15 days' salary. 26 working days/month used for covered organisations.
⚠️ Disclaimer: Actual gratuity depends on company policy and exact calculation method. Consult HR or a CA. Source: Payment of Gratuity Act 1972, Ministry of Labour.
Last Updated: June 2025 · Reviewed by Wolf Office Tools Editorial Team