GRATUITY CALCULATOR

Payment of Gratuity Act, 1972 usually covers establishments with 10 or more employees. Updates under the Code on Social Security, 2020 are widely discussed as effective from 21 Nov 2025 (see overview below). Typically 5 years continuous service for permanent employees; fixed-term workers may qualify after about 1 year under the new framing. Death/disablement: special rules apply. Some policies treat 4 years 240 days as completing five years—confirm with your employer.

Under the new rules summary, wages for gratuity should reflect at least 50% of CTC; this tool uses last drawn Basic + DA, with an optional 50% of monthly CTC floor when enabled. Gratuity is often tax-exempt up to ₹20 lakh under Section 10(10); confirm with HR / a CA.

Reference: Gratuity rules — Bajaj Finserv · Fixed-term & contract overview.

Employment type (for eligibility notes)

Usual rule for permanent staff: 5 years continuous service (with exceptions e.g. death/disablement). If you have under 5 years, payout may be nil under classic rules — use Fixed-term above if that matches your role.

Last drawn salary — Basic + Dearness Allowance (₹ / month)Monthly CTC (optional — for 50% wage floor)

Use max(Basic+DA, 50% of CTC) as wages for this estimate (aligns with common wage-code “50%” checks; verify your structure).

Establishment covered under the Payment of Gratuity Act (use ÷26 on last drawn Basic+DA). Uncheck for the ÷30 variant used when not covered — often based on average wages over the last 10 months; this field still uses one monthly figure as a shortcut (see your employer).

Full years of service

Additional months (0–11)

Tenure rounding: if extra months > 6, that period is counted as one full year (e.g. 11 years 8 months → 12 years), per common gratuity rounding.