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What it is

Gratuity is a lump sum your employer pays when you leave, retire or are let go, as thanks for long service.

How it's worked out

Covered by the Gratuity Act (10 or more employees): last monthly basic + DA × 15 × years ÷ 26. Not covered: the same over 30. Up to ₹20 lakh is tax-free for private-sector employees.

What each input means

Good to know

You usually need 5 years with the employer, but not on death or disability. More than 6 months in the last year counts as a full year under the Act.

A quick example

₹52,000 basic + DA after 10 years, covered: 52,000 × 15 × 10 ÷ 26 = ₹3 lakh, all tax-free.

This calculator is in the Lekhya app too — offline, no account, and pre-filled from what you track, like your PPF, EPF and NPS. Nothing leaves your phone.

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