Gratuity calculator
Advanced settings
Rule-covered exits: 21 Nov 2025–09 Oct 2026.
Confirm a covered monthly-rated category. Other categories are unavailable.
Use confirmed employment/payroll records.
Confirm statutory wages, chapter V coverage and continuous service; no forfeiture, better contract terms or reduced-wage re-employment.
A scheme-specific estimate is unavailable for these details. Review the highlighted inputs; PDF and share remain disabled.
- Uncapped formula—
- Statutory ceiling₹20,00,000
Scheme details & suitability
A statutory lump-sum benefit paid on eligible exit, based on last wages and service.
Payable after 5 years of continuous service, except death or disablement.
Monthly-rated employees under Chapter V, regular or direct fixed-term.
Pros
- Statutory right, not employer discretion
- Protects long-service employees at exit
- Better employer terms can still apply separately
Cons
- Capped at the statutory ceiling
- Requires 5 years of continuous service for an ordinary exit
- Tax exemption not automatic — needs separate review
Dated rules and source documents
Rule review: 9 October 2026. Supported exit dates: 21 November 2025–9 October 2026. Code on Social Security 2020, chapter V. This is a gross statutory estimate, not a payroll settlement or legal determination.
Coverage: confirmed monthly-rated, non-seasonal employment under chapter V; payroll-confirmed continuous service under section 54 and statutory wages under section 2(88). Basic + DA alone may be insufficient: retaining allowance and statutory add-backs can apply. No automatic wage reconstruction.
Ordinary retirement/resignation requires five completed continuous-service years. Only the residual service strictly exceeding six months adds a counted year; exactly six months does not. The 4.8-year shortcut is not used. Attendance-based deemed service requires individual legal review.
Direct fixed-term contract expiry requires at least one completed year. Death and qualifying disablement waive the ordinary five-year requirement. Fractional fixed-term/death cases are unavailable: Code section 53(2) specifies pro rata, while Central rule 33(1)(a), second proviso, rounds subsequent fixed-term service exceeding six months. No rounding or day-count convention is invented.
Formula: last monthly statutory wage * 15 / 26 * counted years. The statutory payment ceiling is ₹20,00,000 (MoLE FAQ 30 December 2025 Q12); better awards/contracts may pay more and are outside this model. Results display nearest rupee; formula audit shows paise, Excel retains numeric precision.
Excluded: government service governed by separate gratuity rules, working journalists, seasonal/piece-rated work, disputed continuity, forfeiture, higher contractual benefits and re-employment on reduced wages after disablement. Qualifying disablement must result from accident/disease and prevent the previous work.
Tax status: not calculated. Gross statutory benefit and income-tax exemption are different questions. Actual amount received, employee category, prior exemptions and applicable tax law need separate qualified review. No tax-free amount or net payment is claimed.
Code on Social Security 2020 · §§2(88), 53–54, 164
MoLE FAQ · 30 December 2025 · Q8–13 (₹20 lakh ceiling)
MoLE additional FAQ · 16 March 2026 · Q6, 10–17
Social Security (Central) Rules 2026 · G.S.R.344(E), 8 May · rule 33
Illustrative estimate only. Not financial or legal advice. Qualified payroll/legal review is required before relying on an entitlement. Rules reviewed 9 October 2026.