Gratuity is a lump sum paid by employers upon retirement or resignation after 5+ years of service. The formula is set by law — not by your employer.
—
26 = working days per month. Statutory maximum tax-free gratuity: ₹20 lakh. Any excess is taxed at slab rate.
For employees not under the Gratuity Act, a different formula may apply. Verify with your HR. See our full disclaimer.