T007 · Indian Tax, GST & Statutory ★ Core India Release

Gratuity Calculator (15/26 Formula & 50% Wage Code Rule)

ग्रेच्युटी कैलकुलेटर (15/26 फॉर्मूला और लेबर कोड नियम)

Calculate gratuity payable under the Payment of Gratuity Act / Code on Social Security (15/26 × Last Drawn Wage × Completed Years) and check the ₹20 Lakh tax-exemption limit.

🔒 Browser-Local Only (Zero Server Upload)
Quick Examples:

Calculated Output & Breakdown

Total Gratuity Payable
₹2,42,308
Effective Wage Used
₹60,000
Rounded Service Tenure
7 Years
Tax-Exempt Gratuity (Cap ₹20L)
₹2,42,308
Taxable Gratuity
₹0
ParameterValue
Reported Basic + DA₹60,000
50% of Total Remuneration (Labour Code Floor)₹50,000
Effective Wage for Calculation₹60,000
Tenure (15/26 × Wage × Years)7 Years
Total Gratuity Payable₹2,42,308
Tax-Exempt Portion u/s 10(10)₹2,42,308
Basic + DA meets the ≥50% remuneration threshold.

About this tool

Estimate gratuity from the wage and service inputs used by this model. Review the calculation alongside service records, employment terms and the applicable eligibility rules before treating it as a payable amount.

Calculations and file processing run in this browser tab. The tool does not send working inputs or files to our hosting server.

हिंदी में जानकारी: ग्रेच्युटी कैलकुलेटर (15/26 फॉर्मूला और लेबर कोड नियम)

मुख्य इनपुट और नियंत्रण हिंदी में देखने के लिए ऊपर “🇮🇳 हिंदी में देखें” चुनें। गणना और फ़ाइल प्रोसेसिंग इसी ब्राउज़र टैब में होती है; टूल आपके इनपुट हमारी होस्टिंग पर नहीं भेजता।

Features

  • Work with Last Drawn Monthly Basic + DA (₹); Total Monthly Gross Remuneration (for 50% Wage Code check) (₹); Completed Years of Service.
  • Review Effective Wage Used; Rounded Service Tenure; Tax-Exempt Gratuity (Cap ₹20L) in the result breakdown.

Benefits

  • Compare the effect of wage and service assumptions.
  • Keep an illustrative settlement calculation ready for review.

Who should use this tool?

  • Employees reviewing an exit estimate.
  • HR teams checking a gratuity worksheet.

How to use

  1. Complete the labelled fields for your scenario, including Last Drawn Monthly Basic + DA (₹); Total Monthly Gross Remuneration (for 50% Wage Code check) (₹); Completed Years of Service. Use the units shown beside each field.
  2. Try the example labelled “₹60k Basic+DA, ₹1L Gross, 7 Yrs 4 Mos” if you want to check the workflow first.
  3. Select Calculate / Run Tool and review Total Gratuity Payable and Effective Wage Used; Rounded Service Tenure.
  4. Check the assumptions and limitations below. Adjust a value to compare scenarios, then copy or download the result you need.

Try these worked examples

ScenarioExample inputsExample result
₹60k Basic+DA, ₹1L Gross, 7 Yrs 4 MosLast Drawn Monthly Basic + DA (₹): 60000Total Monthly Gross Remuneration (for 50% Wage Code check) (₹): 100000Completed Years of Service: 7Additional Months (≥6 months rounds up 1 year): 4₹2,42,308
₹40k Basic+DA, ₹1L Gross (50% Wage Floor Kicks In), 10 Yrs 8 MosLast Drawn Monthly Basic + DA (₹): 40000Total Monthly Gross Remuneration (for 50% Wage Code check) (₹): 100000Completed Years of Service: 10Additional Months (≥6 months rounds up 1 year): 8₹3,17,308

Reference and processing

Ministry of Labour & Employment — Payment of Gratuity Act & Social Security Code FAQs · Listed applicability: 2025-2026 (Social Security Code w.e.f. 21 Nov 2025)

Calculations and file processing run in this browser tab. The tool does not send working inputs or files to our hosting server.

FAQs

Does the calculated amount confirm that I am eligible?

The arithmetic does not establish legal eligibility, continuous service or the treatment of a particular employment contract. Confirm those matters with the employer and current applicable rules.

Which inputs do I need for Gratuity Calculator (15/26 Formula & 50% Wage Code Rule)?

Use Last Drawn Monthly Basic + DA (₹); Total Monthly Gross Remuneration (for 50% Wage Code check) (₹); Completed Years of Service; Additional Months (≥6 months rounds up 1 year). The built-in examples show how those fields fit together.

What should I check before using this result?

Eligibility normally requires 5 years of continuous service (or 1 year for fixed-term employees under the new Labour Codes). Tax exemption cap for private sector employees is ₹20,00,000. Check current official rules and your own circumstances before making a filing or financial decision.

What happens to the information I enter?

Calculations and file processing run in this browser tab. The tool does not send working inputs or files to our hosting server. Tool favourites save only tool IDs in this browser. Sharing sends the tool link, not your working values or files.

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