Gratuity & Earned Leave Encashment Calculator (Payment of Gratuity Act 1972)
Calculate statutory gratuity payout using the official 15/26 formula and earned leave (EL up to 300 days) encashment with latest ₹25 Lakh tax exemption limits.
Employment Sectors & Exemption Limits
Click any sector to auto-configure statutory formula, tax exemption ceiling (₹20L / ₹25L), and EL encashment rules.
Central Govt Employee (7th CPC)
Full DA indexation + 300 EL Days fully tax-free
State Govt / PSU Employee
Standard 15/26 formula with state dearness allowance
Private (Covered under Gratuity Act)
15 days salary per completed year (15/26 formula)
Private (Not Covered under Act)
15/30 formula based on last 10 months average salary
Full 300 Days EL Encashment
Maximum permissible accumulated earned leave payout
Frequently Asked Questions on Gratuity & Leave Encashment
1. What is the official gratuity formula under the Payment of Gratuity Act 1972?
The statutory formula is: Gratuity = (15 * (Last Drawn Basic + DA) * Completed Years of Service) / 26, where 26 represents total working days per month.
2. What is the maximum limit for Earned Leave (EL) encashment at retirement?
Central/State government employees and most corporate establishments allow encashment of accumulated Earned Leave up to a ceiling of 300 days.
3. What are the current tax exemption ceilings for gratuity and leave encashment?
For government employees, both benefits are 100% tax-exempt. For private sector employees, gratuity is exempt up to ₹20 Lakhs and leave encashment is exempt up to ₹25 Lakhs.
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