calculate_gratuity
Compute statutory gratuity under the Payment of Gratuity Act, 1972 from last drawn salary and years of service. Get the ₹20 lakh tax-exempt limit and breakdown for CTC or retirement planning.
Instructions
Calculate gratuity under the Payment of Gratuity Act, 1972.
Use when computing terminal benefits, comparing CTC packages, or planning retirement benefits.
Args: last_drawn_salary: Basic + DA per month. years_of_service: Total service duration. is_covered_under_act: True for establishments with 10+ employees.
Returns: Standard envelope with gratuity amount, tax-exempt limit, and breakdown.
Notes: Minimum 5 years service required (except death/disablement). Tax-exempt ceiling is ₹20,00,000.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| years_of_service | Yes | Total years served (e.g., 5.8 = 5 yrs 9 months) | |
| last_drawn_salary | Yes | Last basic salary + DA per month in INR | |
| is_covered_under_act | No | True if establishment has 10+ employees |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
No arguments | |||