Gratuity Calculator 2025

Calculate your gratuity amount based on New Labour Code 2025. Fixed-term employees now eligible after just 1 year of service.

India (IN)INRFreeNo Login RequiredInstant ResultsNew Labour Code 2025

Employee Details

Enter your employment information

Employee Type

Permanent Employee (5 years minimum)

Fixed-Term Employee (1 year minimum - NEW)

Years of Service

Additional Months

Organization Type

Covered under Payment of Gratuity Act (26 days)

Not covered under Act (30 days)

Salary Details

Enter your last drawn salary information

Last Drawn Monthly Salary (CTC)

Enter your total monthly CTC

Salary Structure

New Structure (50% Basic - Labour Code 2025)

Old Structure (40% Basic - Before Nov 2025)

Calculated Components

Basic Salary (50%):₹25,000

Last Drawn Wages (Basic + DA):₹25,000

Gratuity Calculation Formula

Gratuity = (Last Drawn Wages × Years of Service × 15) / 26

Last Drawn Wages: Basic Salary + Dearness Allowance

Years of Service: 10.00 years

Maximum Limit: ₹20,00,000

Eligibility Status

Eligible (5 years minimum for permanent employees)

Gratuity Amount

₹1,44,231

Years of Service10.00 years

Last Drawn Wages₹25,000

Calculated Amount₹1,44,231

Tax Implications

Tax-Free Amount₹1,44,231

Gratuity up to ₹20 lakhs is tax-free. Amount exceeding ₹20L is taxable.

Old vs New Structure

Old (40% Basic)₹1,15,385

New (50% Basic)₹1,44,231

Increase+₹28,846 (25.00%)

New Labour Code increases gratuity due to higher basic pay (50% of CTC).

Year-wise Gratuity Projection

See how your gratuity grows with years of service

Years	Gratuity Amount	Progress
5 years	₹72,115
6 years	₹86,538
7 years	₹1,00,962
8 years	₹1,15,385
9 years	₹1,29,808
11 years	₹1,58,654
13 years	₹1,87,500
15 years	₹2,16,346
17 years	₹2,45,192
19 years	₹2,74,038
21 years	₹3,02,885
23 years	₹3,31,731
25 years	₹3,60,577
27 years	₹3,89,423
29 years	₹4,18,269

Frequently Asked Questions

What is gratuity?

Gratuity is a monetary benefit paid by an employer to an employee for services rendered to the company. It's a lump sum payment given at the time of retirement, resignation, or termination.

What is the Payment of Gratuity Act?

The Payment of Gratuity Act, 1972 is a social security legislation that provides for payment of gratuity to employees in establishments employing 10 or more persons.

What changed in New Labour Code 2025?

The new labour codes (effective November 21, 2025) introduced key changes: (1) Fixed-term employees now eligible after 1 year (previously 5 years for all), (2) Basic salary must be at least 50% of CTC, increasing gratuity amounts, and (3) Expanded coverage to more employees.

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Disclaimer

This calculator provides estimates based on the Payment of Gratuity Act, 1972 and New Labour Code 2025. Actual gratuity may vary based on company policies and specific circumstances. Please consult with your HR department or a financial advisor for personalized advice. Last updated: December 2025.