Find the gratuity you get when you leave a job after five or more years of continuous work, and how much of it is tax-free.
Fifteen days of salary is payable for each completed year of service.
Monthly salary is divided by 26 working days to get a daily rate.
Service of more than six months in the final year rounds up to a full year.
Eligibility normally requires five years of continuous service, waived in case of death or disablement.
Gratuity: 15 × last drawn salary × years of service ÷ 26
Salary: Last drawn basic + dearness allowance
26: Working days in a month under the Act
Do I get gratuity if I leave before 5 years?
Usually not. Five years of continuous service is the normal rule. The exception is death or disability, where gratuity is paid no matter how long you worked.
Is gratuity taxable?
Gratuity is tax-free up to a lifetime limit of ₹20 lakh for non-government employees. Anything above that is taxable. Government employees get it fully tax-free.
Does 4 years and 7 months count as 5 years?
Usually not — the five-year rule is based on completed years. Rounding up only applies once you already qualify, when working out the amount, not for qualifying in the first place. Some court cases have allowed 4 years and 240 days, so check your employer's own policy.