Gratuity calculator as per the new labour code

Gratuity under the Code on Social Security, 2020 is 15 days' wages for each year of service, on the wages last drawn, with wages under the 50% rule. It applies to exits on or after 21 November 2025. Fixed-term employees qualify after one year.

Your figures

Is any pay given in kind (food coupons, ration, mobile recharge)?

NoYes

Paid by the piece or the day, in a seasonal establishment, or a working journalist?

NoYes

One month's pay

Rupees a month, as on the pay statement. Leave a box blank if nothing is paid under it. Write 1,50,000 or 150000; no ₹ sign.

Wages: s.2(y)(i) to (iii)

Basic pay

s.2(y)(i)

Dearness allowance

s.2(y)(ii)

Retaining allowance

s.2(y)(iii)

Left out of wages, counted in the 50% test: s.2(y)(a) to (i)

House rent allowance

s.2(y)(f)

Conveyance allowance, travel concession

s.2(y)(d)

Overtime allowance

s.2(y)(h); Additional FAQs 1a and 8

Commission

s.2(y), exclusion clause (i)

Employer's PF and pension contribution

s.2(y)(c); Additional FAQ 1b. Enter the contribution actually paid for this month, not the new figure the PF calculator works out.

Statutory bonus paid with the month

s.2(y)(a); Additional FAQ 1b

Value of house, amenities or services; special expenses of the job; pay under an award or settlement

s.2(y)(b), (e), (g)

Other items

Any other allowance, e.g. special allowance

Not named in s.2(y)(a) to (k): the Code's text makes it wages, the FAQ wording puts it in the test. Both are shown.

Gratuity, retrenchment or retirement benefit shown in the pay

s.2(y)(j), (k): never wages. FAQ 7 counts them in total remuneration, Additional FAQ 1b does not. Both are shown.

Date of joining

Last working day

Employment

RegularFixed term (written contract for a fixed period)

Why employment ends

Resignation, retirement, superannuation or end of contractDeathDisablement by accident or disease

The rules applied

Amount: s.53(2), fifteen days' wages for every completed year or part over six months; for monthly pay, the monthly wages ÷ 26 × 15 (Explanation 3). All service counts, before or after the Code (s.54(A)).
Who: five years' continuous service (s.53(1)); not needed on death, disablement or the end of fixed term employment (second proviso). Fixed term: gratuity after one year under the contract (Industrial Relations Code, 2020, s.2(o)(c); Additional FAQs 14 and 19).
Fixed term and death: "pro rata" (s.53(2), third proviso). The Code gives no method, so the completed-months figure is shown beside the year count.
Wages last drawn: from 21 November 2025, on the new definition (FAQ 8; Additional FAQs 6 and 17).
Most: s.53(3) leaves it to a notification, not read here; the Ministry's FAQ 13 says it is currently ₹20 lakh. Better terms in an award, agreement or contract still apply (s.53(5)).

Sources read in the Gazette of India and on labour.gov.in on 6 November 2026. Rules made by States are not covered.

A calculation from the published texts, not legal advice. It does not say that a pay structure complies with the Codes. Check with the rules that apply to your establishment.