CoHire's Gratuity Calculator is a free tool that helps employees, HR professionals, and employers instantly compute the gratuity amount payable under the Payment of Gratuity Act, 1972. It provides actionable insights.
Input your total monthly salary and specify Basic and DA portions.
Enter your joining date and last working day to calculate exact service.
Instantly see your gratuity amount and actionable insights.
Gratuity is calculated only on your Basic Salary and Dearness Allowance (DA). Other allowances like HRA, LTA, or special allowances are excluded.
Gratuity is calculated at the rate of 15 days' salary for each completed year of continuous service. As per the Payment of Gratuity Act, a working month is considered to have 26 working days..
A minimum of 5 years of continuous service is required. If the remaining period of service in the final year exceeds 6 months, it is rounded up to one full year for the purpose of gratuity calculation..
Under Section 10(10) of the Income Tax Act, gratuity of up to ₹20 lakh received by employees covered under the Act is fully exempt from income tax..
