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New Labour CodeGratuity calculator — new Labour Code rules
Work out gratuity with the 15/26 formula, the 5-year and 1-year rules, rounding of service and the ₹20 lakh limit.
Gratuity calculator
How much gratuity will you get?
₹
years
months
Gratuity payable–
Tax-free (up to ₹20 lakh)–
How it works
- Formula: last basic + DA × 15 × years of service ÷ 26.
- Eligibility: 5 years of continuous service for permanent staff. Under the Labour Codes in force from 21 November 2025, fixed-term employees get gratuity after 1 year. No minimum in case of death or disablement.
- Rounding: 6 months or more in the last year counts as a full year.
- Limit: maximum ₹20 lakh. For private-sector employees, gratuity up to ₹20 lakh is tax-free.
Common questions
What is the gratuity formula?
Last basic + DA × 15 × years of service ÷ 26, for employers covered by the gratuity law.
Do I get gratuity before 5 years?
Under the Labour Codes in force from 21 November 2025, fixed-term employees get gratuity after 1 year. Permanent employees need 5 years, except in case of death or disablement.
How much gratuity is tax-free?
For private-sector employees, gratuity up to ₹20 lakh is tax-free.
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