Gratuity Rules in Uttar Pradesh — Rules & Rates 2026
Gratuity in Uttar Pradesh is calculated as (Last Drawn Salary × 15 × Years of Service) ÷ 26 under the central Payment of Gratuity Act, 1972. Minimum service: 5 years. Maximum gratuity: ₹20 lakh (tax-free). Employer must pay within 30 days of separation; delay attracts simple interest. The rules are uniform across India — there are no Uttar Pradesh-specific gratuity variations for private sector employees.
Last updated: 2026-04-07
Gratuity Rules Rates & Rules — Uttar Pradesh
| Parameter | Value — Uttar Pradesh |
|---|---|
| Formula | (Last drawn salary × 15 × years of service) ÷ 26 |
| Eligibility | Minimum 5 years of continuous service |
| Maximum | ₹20 lakh (enhanced from ₹10L in 2018; likely ₹25L from 2024 notification) |
| Tax Exemption | ₹20L for private sector; fully exempt for government employees |
| Payment Deadline | 30 days from date of separation |
| Notes | Gratuity is governed by the central Payment of Gratuity Act, 1972. No state-specific variation except for higher payment under state PSU agreements. |
Formula
(Last drawn salary × 15 × years of service) ÷ 26
Eligibility
Minimum 5 years of continuous service
Maximum
₹20 lakh (enhanced from ₹10L in 2018; likely ₹25L from 2024 notification)
Tax Exemption
₹20L for private sector; fully exempt for government employees
Payment Deadline
30 days from date of separation
Notes
Gratuity is governed by the central Payment of Gratuity Act, 1972. No state-specific variation except for higher payment under state PSU agreements.
Gratuity Rules Calculator
Basic + Dearness Allowance only
Gratuity Amount
₹3,69,231
Tax-Free Amount
₹3,69,231
Up to ₹20L tax-free under Section 10(10)
Formula: (Last Salary × 15 × Years) ÷ 26. Capped at ₹20 lakh for employees covered under the Payment of Gratuity Act, 1972.
Frequently Asked Questions
What are the Gratuity Rules rules in Uttar Pradesh in 2026?+
Uttar Pradesh follows state-specific regulations for Gratuity Rules. The rules are governed by the Uttar Pradesh state government and applicable central legislation. Use the calculator above to compute exact values based on Uttar Pradesh's current rates and slabs. Rates may be revised in the annual state budget.
Is Gratuity Rules different in Uttar Pradesh compared to other states?+
Yes. Gratuity Rules varies significantly across Indian states because it is governed by state legislation (except EPF/Gratuity which are central). Uttar Pradesh's rates, slabs, and exemptions are unique and set independently of other states. Always verify with the official Uttar Pradesh government portal for the latest rates.
Where can I find official Gratuity Rules information for Uttar Pradesh?+
The official source for Gratuity Rules in Uttar Pradesh is the state government's revenue/finance department website or the relevant statutory authority. For property-related taxes, check the Uttar Pradesh Registration & Stamps Department. For employment taxes, check the Uttar Pradesh Labour Department or Commercial Tax portal.
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Gratuity Rules in Other States
Disclaimer: The rates, rules, and data shown for Uttar Pradesh are approximate and for informational purposes only. Tax laws, stamp duty rates, and government regulations change frequently. Always verify current rates with the official Uttar Pradesh government portal or a qualified professional before making financial or legal decisions. CalcCrack is not responsible for any decisions made based on this information. Last updated: April 2026.