Gratuity on ₹25,000 basic salary for 7 years

Gratuity amount, formula and tax treatment.

With a last drawn basic salary + DA of ₹25,000 a month and 7 years of service, your gratuity is ₹1,00,962 under the Payment of Gratuity Act.

Gratuity amount

₹1,00,962

Per year of service

₹14,423

If employer not covered by the Act

₹87,500

₹25,000 × 15 × 7 ÷ 26 = ₹1,00,962

Change salary or service in the gratuity calculator →

Same salary, different years of service

Years of service	Gratuity
5 years	₹72,115
7 years	₹1,00,962
10 years	₹1,44,231
15 years	₹2,16,346
20 years	₹2,88,462
25 years	₹3,60,577

Is this gratuity taxable?

For private-sector employees, gratuity up to ₹20 lakh over a career is tax-free under section 10(10), so ₹1,00,962 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, 7 years of service

Frequently asked questions

How much gratuity for ₹25,000 basic salary and 7 years?

Using the formula basic × 15 × years ÷ 26, gratuity is ₹1,00,962. If your employer isn't covered by the Gratuity Act, it is ₹87,500 (divisor 30).

Is gratuity calculated on gross salary?

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