Gratuity for ₹40,000/Month Basic Salary After 5 Years
Calculate the gratuity payout for a ₹40,000/month basic salary after 5 years of service under the Payment of Gratuity Act, 1972.
With a last drawn monthly basic salary of ₹40,000 and 5 years of service, your gratuity entitlement is ₹1,15,385. The full amount is tax-free under Section 10(10) of the Income Tax Act.
- Last drawn monthly basic
- ₹40,000
- Years of service
- 5 years
Gratuity Amount
5 yrs service₹1.15 Lakh
₹1,15,385
tax-free under Section 10(10)
Monthly basic salary
₹40,
Years of service
5 years
Formula
15/26 rule
Tax-free limit
₹20 Lakhs
₹20,00,000
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Gratuity = (Last Drawn Salary x 15 x Years of Service) / 26. Tax-free up to ₹20,00,000 under Section 10(10) of the Income Tax Act. Applicable under the Payment of Gratuity Act, 1972 for establishments with 10 or more employees.