15/26 gratuity formula calculator (India)
Calculate statutory gratuity payout using the official 15/26 formula under the Payment of Gratuity Act 1972 with ₹20 Lakh tax exemption. Free.
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Statutory Formula (15/26): Gratuity = (15 × Last Drawn Basic Salary × Tenure) ÷ 26.
The number 26 represents the official working days in a month (excluding 4 Sundays) under Indian labor laws.
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About this tool
Calculate your legal gratuity payout using the 15/26 formula specified in the Payment of Gratuity Act 1972.
How to use it
- 1 Enter your last drawn monthly Basic Salary + Dearness Allowance (DA).
- 2 Enter your completed years of continuous service and additional months.
- 3 Calculate your total gratuity entitlement, tax-free exemption, and any taxable excess.
Questions
Why is gratuity divided by 26 in India?
The calculation divides monthly salary by 26 because it reflects the 26 working days in a month (excluding four Sundays) under Indian labor standards.
What is the gratuity formula in India?
Under the Payment of Gratuity Act 1972: Gratuity = (15 × Last Drawn Basic Salary × Completed Years of Service) ÷ 26. 26 represents working days in a month.
What is the tax exemption limit on gratuity in India?
Gratuity received by non-government employees is tax-free up to a maximum lifetime statutory ceiling of ₹20,00,000 (₹20 Lakh) under Section 10(10).
Can I get gratuity before completing 5 years?
Generally no. 5 years of continuous service is mandatory, except if employment terminates due to death or permanent disablement.
Is my data uploaded?
No. This tool runs in your browser, so your text and files never reach our server.
Is this tool free?
Yes. It’s free to use with no sign-up and no limits for normal use.
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