Payment of Gratuity Act 1972: s.4 · EPF & MP Act 1952 · exemption u/s 10(10)/10(11)-10(12) IT Act 1961 [Sch. II, IT Act 2025] · FY 2026-27
The Gratuity & EPF Calculator combines two tools: (1) Gratuity Calculator under Section 4 of the Payment of Gratuity Act 1972 — computes gratuity as (15/26) × last drawn Basic+DA × completed years of service, with rounding; and (2) EPF Corpus Projection — projects the EPF corpus at retirement based on current salary, EPF interest rate (8.25% current), salary growth rate, and years remaining. Gratuity is exempt up to ₹20 lakh under Section 10(10) and EPF corpus is exempt under Section 10(12) after 5 years of service.
What is the gratuity formula?
Gratuity = (15/26) × Last drawn Basic+DA × Completed years of service. The fraction 15/26 represents 15 days' wages based on 26 working days per month.
When is gratuity payable?
Gratuity is payable on superannuation, resignation after 5 years of continuous service, retirement, or death/disablement (5-year condition waived for death/disablement).
What is the EPF interest rate for FY 2026-27?
The EPFO declares the EPF interest rate annually. The rate was 8.25% for FY 2023-24 and 2024-25. Check the latest EPFO notification for FY 2026-27 when declared.
Is EPF withdrawal taxable?
EPF withdrawal after 5 years of continuous service is fully exempt under Section 10(12). Premature withdrawal (before 5 years) is taxable as salary in the year of withdrawal.