Gratuity on ₹30,000 basic salary for 10 years

Gratuity amount, formula and tax treatment.

With a last drawn basic salary + DA of ₹30,000 a month and 10 years of service, your gratuity is ₹1,73,077 under the Payment of Gratuity Act.

Gratuity amount
₹1,73,077
Per year of service
₹17,308
If employer not covered by the Act
₹1,50,000

₹30,000 × 15 × 10 ÷ 26 = ₹1,73,077

Same salary, different years of service

Years of serviceGratuity
5 years₹86,538
7 years₹1,21,154
10 years₹1,73,077
15 years₹2,59,615
20 years₹3,46,154
25 years₹4,32,692

Is this gratuity taxable?

For private-sector employees, gratuity up to ₹20 lakh over a career is tax-free under section 10(10), so ₹1,73,077 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, 10 years of service

Frequently asked questions

How much gratuity for ₹30,000 basic salary and 10 years?

Using the formula basic × 15 × years ÷ 26, gratuity is ₹1,73,077. If your employer isn't covered by the Gratuity Act, it is ₹1,50,000 (divisor 30).

Is gratuity calculated on gross salary?

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

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