Source: https://awesomecalcs.com/gratuity-calculator/20000-salary-5-years-gratuity
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# Gratuity for ₹20,000/Month Basic Salary After 5 Years

> Calculate the gratuity payout for a ₹20,000/month basic salary after 5 years of service under the Payment of Gratuity Act, 1972.

Interactive calculator: https://awesomecalcs.com/gratuity-calculator/20000-salary-5-years-gratuity

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## Scenario inputs

```json
{
  "inputs": {
    "lastDrawnSalary": 20000,
    "yearsOfService": 5
  }
}
```

## Frequently asked questions

### What if service is 10 years instead of 5 at ₹20,000/month?

5 years is the minimum service for gratuity in India. At ₹20,000/month, your gratuity is ₹57,692. If you stay for 10 years at the same salary, the gratuity doubles to ₹1,15,385 since the formula scales linearly with years of service. Try the gratuity calculator with 10 years to confirm.

### Is this ₹57,692 gratuity tax-free?

5 years is the minimum service for gratuity in India. At ₹20,000/month, your gratuity is ₹57,692. This is fully tax-free up to the ₹20 lakh statutory exemption under Section 10(10) of the Income Tax Act. You would need a gratuity payout many times this size before any tax applies.

### How is gratuity different from EPF for a ₹20,000/month salary?

Gratuity of ₹57,692 is a one-time lump-sum paid by the employer on leaving (after 5+ years). EPF, by contrast, accumulates monthly contributions from both you and your employer (12% of basic each) over your entire tenure and is available on retirement or resignation. EPF grows with compound interest; gratuity is a flat formula payout.