✦ Free · For Salaried Employees · India
Gratuity / HRA / NPS Calculator
Calculate gratuity, HRA exemption, and NPS corpus for salaried employees in India — free, instant, with tax savings breakdown.
Gratuity
HRA Exemption
NPS Corpus
💼 Salary Calculators FREE
📌 Gratuity is payable after 5 years of continuous service. Tax-free up to ₹20 lakh.
Last Drawn Monthly Salary (Basic + DA)
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Years of Service
Employee Category
Gratuity Amount
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Tax-Free Amount
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Taxable Amount
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Per Year Served
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All calculations are based on inputs and current rules (FY 2025-26). Tax laws subject to change. Consult a CA before making investment decisions. Not financial advice.
Gratuity, HRA & NPS — Salaried Employee Guide India
Gratuity Formula
Gratuity = (Last Salary × 15 × Years of Service) ÷ 26
For non-covered employees: ÷ 30 instead of 26
Tax-free limit: ₹20 lakh (updated in Budget 2023)
For non-covered employees: ÷ 30 instead of 26
Tax-free limit: ₹20 lakh (updated in Budget 2023)
Gratuity is a lump sum paid by employers to employees who have completed at least 5 years of continuous service. It is governed by the Payment of Gratuity Act, 1972. The tax-free limit is ₹20 lakh for private sector employees.
HRA Exemption — How it Works
HRA exemption is the minimum of three values: (1) Actual HRA received, (2) Rent paid minus 10% of Basic salary, (3) 50% of Basic for metro cities / 40% for non-metro. Only the Old Tax Regime allows HRA exemption — the New Tax Regime does not.
NPS — Key Facts
- Additional ₹50,000 deduction under Section 80CCD(1B) — over and above the ₹1.5L 80C limit
- At retirement (age 60): minimum 40% must be used for annuity (monthly pension), 60% can be withdrawn tax-free
- Tier I account is mandatory, Tier II is voluntary (no tax benefits)
Frequently Asked Questions
What is the gratuity amount for 10 years of service?
For 10 years of service with a last drawn salary (basic + DA) of ₹50,000: Gratuity = (50,000 × 15 × 10) ÷ 26 = ₹2,88,461. This entire amount is tax-free as it is below the ₹20 lakh limit.
Can I claim HRA if I pay rent to my parents?
Yes, you can pay rent to your parents and claim HRA exemption. However, your parents must declare this rental income in their tax return. A proper rent agreement and rent receipts are recommended. Note: You cannot pay rent to your spouse and claim HRA.
Is NPS better than PPF?
NPS offers an additional ₹50,000 tax deduction (80CCD(1B)) beyond the ₹1.5L 80C limit, potentially higher equity returns, but has a lock-in until age 60 and mandates 40% annuity at retirement. PPF is fully tax-free, more liquid (partial withdrawal after 5 years), but limited to ₹1.5L/year. For most salaried employees in the 30% bracket, combining both (PPF for liquidity + NPS for extra deduction) works best.