Gratuity on ₹1,00,000 basic salary for 25 years

Gratuity amount, formula and tax treatment.

With a last drawn basic salary + DA of ₹1,00,000 a month and 25 years of service, your gratuity is ₹14,42,308 under the Payment of Gratuity Act.

Gratuity amount

₹14,42,308

Per year of service

₹57,692

If employer not covered by the Act

₹12,50,000

₹1,00,000 × 15 × 25 ÷ 26 = ₹14,42,308

Change salary or service in the gratuity calculator →

Same salary, different years of service

Years of service	Gratuity
5 years	₹2,88,462
7 years	₹4,03,846
10 years	₹5,76,923
15 years	₹8,65,385
20 years	₹11,53,846
25 years	₹14,42,308

Is this gratuity taxable?

For private-sector employees, gratuity up to ₹20 lakh over a career is tax-free under section 10(10), so ₹14,42,308 would be fully exempt (if you haven't received gratuity tax-free before). For government employees, gratuity is fully tax-free.

Remember

Gratuity is usually payable after 5 years of continuous service with the same employer.
More than 6 months in your final year counts as a full year under the Act.
Only basic salary and dearness allowance count — not HRA, bonus or other allowances.

Other salaries, 25 years of service

Frequently asked questions

How much gratuity for ₹1,00,000 basic salary and 25 years?

Using the formula basic × 15 × years ÷ 26, gratuity is ₹14,42,308. If your employer isn't covered by the Gratuity Act, it is ₹12,50,000 (divisor 30).

Is gratuity calculated on gross salary?

No. Gratuity is calculated on your last drawn basic salary plus dearness allowance only.