Jira & Confluence 
Bitrix24 Gratuity · Code on Social Security 2020 · ₹20 lakh
Gratuity calculator India — new rules — the 50% wage rule, fixed-term after one year, ₹20 lakh ceiling
Short answer. Put in your basic + DA, your other allowances and your service dates: you see the wages the new Labour Codes count, the years that count, your gratuity and how it compares with basic + DA alone — with an application to your employer. When: on superannuation, retirement, resignation, death or disablement, or the end of a fixed-term contract, after five years of continuous service (Code on Social Security, s. 53(1)).
- Hand in the gratuity application — on your last daytype the date
- Follow up with HR if it is not paid — about 30 days latertype the date
Check your own case.
Reminders, not legal deadlines: the forms and time limits come from the rules under the Code; ask your employer or your state's Labour Department.
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Gratuity · new rules · ₹20 lakh ceiling
Your gratuity under the new Labour Codes — wages, years and the amount to claim
Put in your basic + DA, your other allowances and your service dates. You see the wages the new rules count (with the 50% rule), the years that count, your gratuity and the old basic-only figure for comparison, plus an application to your employer. No sign-up.
- Check your last payslip: if allowances are more than half your pay, the excess now counts as wages.
- Hand in the application in the Word file with your appointment letter, last payslip and relieving letter.
- Check at the start of the year: the ₹20 lakh ceiling and the 15 days are notified by the Central Government.
From the Code on Social Security, 2020, s. 53: 15 days' wages for every completed year or part year above six months, at the wages last drawn; monthly wages ÷ 26 × 15; five years needed except on death, disablement or the end of a fixed-term contract (one year, pro rata); ceiling ₹20 lakh. Wages: basic + DA + retaining allowance, with allowances above 50% added back (Ministry FAQs). Not legal advice.
Meera, Layers template assistant
Tell me your basic + DA, your allowances and your dates, and I will show your gratuity under the new rules.
The application to your employer is ready below.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| When | On superannuation, retirement, resignation, death or disablement, or the end of a fixed-term contract, after five years of continuous service | Code on Social Security, s. 53(1) |
| Fixed-term | Eligible after one year of service under the contract; paid pro rata | s. 53(1)–(2); Ministry FAQ 16.03.2026 |
| Amount | 15 days' wages for every completed year, or part year above six months, at the wages last drawn | s. 53(2) |
| Monthly-rated | 15 days' wages = monthly wages ÷ 26 × 15 | s. 53, Explanation 3 |
| Wages | Basic + DA + retaining allowance; allowances above 50% of all remuneration are added back | s. 2(88); Ministry FAQs |
| Ceiling | As notified by the Central Government — currently ₹20 lakh | s. 53(3); Ministry FAQ 30.12.2025 |
The Labour Codes came into force on 21 November 2025, and gratuity paid on or after that date uses the new definition of wages (Ministry FAQs). Check at the start of the year: the ceiling and the number of days are notified by the Central Government. A better award, agreement or contract still applies (s. 53(5)).
Step by step
What to do, in order
1
Take your last payslip
Basic + DA, and every other allowance — HRA, conveyance, special allowance.
2
Add your dates
First and last day of service, and whether you are on a fixed-term contract.
3
Claim it
The application to your employer is ready, with your computation and bank details.
Questions
What is the gratuity formula in India?
Last drawn monthly wages ÷ 26 × 15 × years of service. A part year above six months counts as a full year, and the total is capped at ₹20 lakh.
What changed with the new labour codes?
From 21 November 2025, «wages» for gratuity are basic + DA + retaining allowance, and if your other allowances are more than half of your pay, the excess is added back — which raises gratuity for many salaried employees. Fixed-term employees qualify after one year.
Do I get gratuity before 5 years?
On death or disablement, and at the end of a fixed-term contract, five years are not needed. A fixed-term employee is eligible after one year under the contract and is paid pro rata.
Is 4 years 7 months counted as 5 years?
The Code counts a part year above six months as a full year when calculating the amount. Whether 4 years and some months meets the five-year condition depends on «continuous service» (s. 54) — ask your employer; the calculator needs 60 months.
Is gratuity calculated on basic or gross?
On «wages» as the Code defines them: basic + DA + retaining allowance, plus any allowances above the 50% limit. It is not your full gross or CTC.
Is it free? Do I need to sign up?
It is free and you do not need to sign up: fill in, see the result and download the file. With a free account you can save a copy to your Layers and come back to it later.
Official sources
- The Code on Social Security, 2020 (No. 36 of 2020) — Chapter V, Gratuity, ss. 53–54 (Ministry of Labour and Employment)
- Ministry of Labour and Employment — FAQs on Labour Codes (30.12.2025): gratuity, wages, ₹20 lakh ceiling
- Ministry of Labour and Employment — Additional FAQs on Labour Codes (16.03.2026): fixed-term gratuity, wages from 21.11.2025
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
A calculator, not legal advice. Government employees under other gratuity rules are not covered by this chapter of the Code.