Calculate your gratuity under the 15/26 formula, including the 1-year rule for fixed-term employees, the ₹20 lakh cap and the tax-free amount.
For employers covered by the gratuity law (10 or more employees):
15 × 50,000 × 5 ÷ 26 = ₹1,44,231.
The part-year rounding applies once you are eligible. Courts have accepted 4 years and 240 days as 5 years in some cases, but most employers apply the 5-year rule strictly.
For non-government employees it is tax-free up to ₹20 lakh over your career. Government employees' gratuity is fully tax-free.