Online Gratuity Calculator
Calculate your payable gratuity amount instantly for both Act-covered and Non-covered organizations.
Quick Answer: How Is Gratuity Calculated Under the Act?
Gratuity is a statutory retirement benefit calculated using the formula: (15 × Last Drawn Basic Salary × Number of Completed Years) ÷ 26. Periods over 6 months are rounded up to the next full year.
- Applies to employees completing 5+ continuous years of service in covered establishments.
- Statutory tax exemption ceiling under Section 10(10) is Rs 20,000,000 (Rs 20 Lakhs).
- 15 days salary is calculated based on a 26-day working month basis.
- Sync employer gratuity provision vouchers directly into Tally Prime.
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Save hours every week. Import purchase invoices, sales bills, and bank statements directly into Tally in 1-click.
Estimated Gratuity Payable
₹2,88,462
Based on Payment of Gratuity Act, 1972 (26-day factor).
(15 * 50000 * 10) / 26What is Gratuity?
Gratuity is a lump sum monetary benefit paid by an employer to an employee as a token of appreciation for completing 5 or more years of continuous service. It is governed by the Payment of Gratuity Act, 1972.
How is Gratuity Calculated? (The Formulas)
Gratuity calculation depends on whether the company is registered under the Payment of Gratuity Act:
Covered under Gratuity Act
Based on a 15-day salary divisor (considering 26 working days in a month):
Not Covered under Gratuity Act
Based on a half-month salary divisor (considering 30 working days in a month):
Step-by-Step Calculation Examples
Here are two practical examples comparing the Act-covered and Non-covered scenarios for an employee with a last drawn salary of Rs. 50,000 and a service tenure of 10 years:
| Parameters | Covered under Gratuity Act | Not Covered under Gratuity Act |
|---|---|---|
| Last Drawn Salary (Basic + DA) | Rs. 50,000 | Rs. 50,000 |
| Working Tenure (Years) | 10 Years | 10 Years |
| Mathematical Divisor | 26 Days | 30 Days |
| Total Gratuity Payable | Rs. 2,88,462 | Rs. 2,50,000 |
Frequently Asked Questions
Everything you need to know about TrulyInvoice for Tally Prime.
On clear digital PDF invoices, TrulyInvoice achieves approximately 96% field-level extraction accuracy based on internal benchmarks. Accuracy on handwritten or low-resolution scanned invoices is approximately 88-90%. Our review-first workflow ensures you catch and correct any AI omissions before they reach Tally.
TrulyInvoice differs from Suvit in three specific ways: (1) Bulk upload support — TrulyInvoice processes multi-file batches at once vs Suvit's 10-invoice cap. (2) Transparent monthly plans starting at ₹399/month for 1,000 pages (Lite), ₹599 for 2,000 pages (Plus), and Custom High Volume Plans vs Suvit's annual subscription model. (3) Multi-user team seating (up to 3 seats) sharing a single voucher quota. Suvit includes broader module coverage like GST filing that TrulyInvoice focuses on purely as a dedicated invoice-to-Tally engine.
Yes. TrulyInvoice's AI extracts data from handwritten invoices, PDFs, scanned images, and multi-page documents. It's trained on diverse Indian invoice formats including handwritten text.
Setup is typically quick: sign up, enable Port 9000 in Tally settings, install the connector, and test with a sample invoice.
TrulyInvoice supports common GST scenarios and can help map interstate (IGST) and intrastate (CGST+SGST) flows based on invoice and ledger data.
TrulyInvoice supports PDF invoices, JPG/PNG images, scanned documents, and handwritten invoices. It works with GST invoices, purchase bills, and sale invoices from any Indian vendor.
Yes. TrulyInvoice works with Tally running on your local computer. Enable Port 9000 in Tally settings (F1 > Settings > Connectivity) and the connector handles the rest. No cloud hosting required.
TrulyInvoice automatically creates missing ledgers and stock items in Tally. You can also create them manually in Tally and click Refresh to sync.
Yes. Invoices are encrypted in transit and at rest. The Tally sync happens on your computer — data never leaves your network during the sync process.
TrulyInvoice processes most invoices in 15-30 seconds from upload to Tally sync. This includes AI extraction, your review, and the actual sync. A single user can process 100+ invoices in under an hour with the review-first workflow.
TrulyInvoice includes a mandatory review step before syncing. You can edit any field the AI extracted. Additionally, mathematical validation checks if amount equals quantity multiplied by rate, flagging potential calculation errors automatically before they reach Tally.
No technical expertise required. Setup involves three simple steps: enable Port 9000 in Tally settings (F1 > Settings > Connectivity), download the connector app, and sign in. Most users complete setup in under 5 minutes. Phone and WhatsApp support is available if needed.
Yes. You can upload up to 20 invoices per batch upload (PDFs, scans, or photos). The system processes them sequentially with 99%+ accurate AI extraction, and you can review and sync them individually or in batches to Tally Prime.
TrulyInvoice creates both Purchase and Sales vouchers in Tally. It supports standard GST scenarios including intra-state (CGST+SGST) and inter-state (IGST) transactions. The system auto-maps GST rates and creates appropriate ledgers based on your invoice data.
Yes. TrulyInvoice includes a free 14-day trial with instant signup — no credit card required. Plans start at ₹399/month for Lite (1,000 pages) and ₹599/month for Plus (2,000 pages, 2 seats) after your trial ends. No hidden costs.
Automate Payroll & Purchase Vouchers in Tally
Sync employee provisions and supplier bills straight into Tally Prime with AI accuracy.
Stop Manual Voucher Entry.
TrulyInvoice automates your complete invoice workflow and syncs directly to Tally Prime.
No credit card · 14-day free trial
Upload Invoice
Drag & drop PDFs, scans, or photos.
AI Extraction
Line items, tax, and ledgers mapped.
1-Click Review
Verify extracted details on dashboard.
Direct Sync
Vouchers created instantly in Tally Prime.