Gratuity on ₹50,000 basic salary for 10 years

Gratuity amount, formula and tax treatment.

With a last drawn basic salary + DA of ₹50,000 a month and 10 years of service, your gratuity is ₹2,88,462 under the Payment of Gratuity Act.

Gratuity amount

₹2,88,462

Per year of service

₹28,846

If employer not covered by the Act

₹2,50,000

₹50,000 × 15 × 10 ÷ 26 = ₹2,88,462

Change salary or service in the gratuity calculator →

Same salary, different years of service

Years of service	Gratuity
5 years	₹1,44,231
7 years	₹2,01,923
10 years	₹2,88,462
15 years	₹4,32,692
20 years	₹5,76,923
25 years	₹7,21,154

Is this gratuity taxable?

For private-sector employees, gratuity up to ₹20 lakh over a career is tax-free under section 10(10), so ₹2,88,462 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 ₹50,000 basic salary and 10 years?

Using the formula basic × 15 × years ÷ 26, gratuity is ₹2,88,462. If your employer isn't covered by the Gratuity Act, it is ₹2,50,000 (divisor 30).

Is gratuity calculated on gross salary?

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