India's complete job-exit calculator — Gratuity · Leave Encashment · Full & Final Settlement · FY 2024-25
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5 years of continuous service is the minimum to be eligible for gratuity under the Payment of Gratuity Act, 1972. In case of death or permanent disability, gratuity is paid regardless of tenure. For companies with fewer than 10 employees, the Act doesn't apply but many still pay as an ex-gratia.
For private sector employees covered under the Gratuity Act, up to ₹20 lakh is tax-free. Any amount above is added to taxable income. Government employees receive gratuity fully tax-free with no upper limit.
Under Section 10(10AA), leave encashment on retirement or resignation is exempt up to the least of: actual amount, ₹25 lakh (revised Budget 2023, up from ₹3 lakh), or 10 months' average Basic+DA. Leave encashment during active service has no exemption — it's fully taxable.
Yes. Gratuity is payable on any separation after 5 years — resignation, retirement, termination, death, or disability. The Payment of Gratuity Act doesn't limit it to retirement alone.
F&F is the final payout when you leave a company — typically processed within 45 days. It includes gratuity (if eligible), leave encashment, salary for days worked in the last month, bonus, notice period pay or recovery, minus loans, TDS, and other deductions.