Gratuity + Leave Encashment Calculator India 2024 | Employee Benefits
🇮🇳 Employee Benefits Calculator

Gratuity + Leave
Encashment Calculator

Calculate your gratuity entitlement and leave encashment amount with tax exemptions under Indian law.

🏆 Gratuity Calculator (Payment of Gratuity Act)
Gratuity Amount
₹0
Tax Exempt Up To
₹20L
Taxable Gratuity
₹0
📅 Leave Encashment Calculator
Leave Encashment
₹0
Tax Exemption
₹0
Taxable Amount
₹0

Gratuity & Leave Encashment:Your Rights

Gratuity is a statutory benefit payable to employees who have completed at least 5 years of continuous service. The Payment of Gratuity Act, 1972 governs this benefit for establishments with 10+ employees. Leave encashment allows employees to receive cash compensation for accumulated earned leaves.

Gratuity Formula

Employer TypeFormulaCeiling
Covered under Gratuity Act(Last salary × 15 × Years) ÷ 26₹20 lakh
Not covered under Act(Last salary × 15 × Years) ÷ 30₹20 lakh

Tax Exemption on Gratuity (2024)

CategoryTax Exemption Limit
Government EmployeesFully Exempt (No limit)
Private Sector (Covered by Act)Least of: Actual, Formula amount, ₹20 lakh
Private Sector (Not Covered)Least of: Actual, Half month salary × years, ₹20 lakh
💡 Note: The tax exemption ceiling on gratuity was increased from ₹10 lakh to ₹20 lakh in 2019. Both government and private sector employees benefit from this enhanced limit.

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