India Payroll RulesGratuity calculator, Code on Social Security 2020
Fifteen days’ wages for each completed year, from section 53 of the Code on Social Security, 2020, read on 13 November 2026. Nothing you type leaves your device.
Worked example
Wages of ₹50,000 a month and 10 years 7 months of service count as 11 years (part of a year beyond six months counts as a year). Fifteen days’ wages are ₹50,000 ÷ 26 × 15 = ₹28,846, and for 11 years the gratuity is ₹3,17,308.
Common questions
What is the gratuity formula?
Section 53(2) of the Code on Social Security, 2020 pays fifteen days’ wages for every completed year of service or part of a year in excess of six months, on the wages last drawn. For a monthly-rated employee, Explanation 3 says fifteen days’ wages are the monthly wages divided by 26 and multiplied by 15.
How many years of service are needed?
Five years of continuous service for retirement or resignation (section 53(1)). The Code says five years is not needed on death, disablement or expiry of a fixed term, and the government says fixed-term employees qualify after one year, on a proportionate basis.
Is there a maximum?
Section 53(3) says the gratuity shall not exceed the amount notified by the Central Government. The Code itself names no figure, so this page lets you enter the notified ceiling.
Sources
- The Code on Social Security, 2020 (Act 36 of 2020), India Code: section 53 (payment of gratuity), section 54 (continuous service) and section 2(88) (wages). Text downloaded from indiacode.nic.in and read on 13 November 2026.
- The Code on Wages, 2019 (Act 29 of 2019, text as on 21 November 2025), India Code: section 17 (time limit for payment of wages) and section 26 (bonus). indiacode.nic.in, read on 13 November 2026.
- Press Information Bureau, "Code on Social Security, 2020: Towards Universal and Inclusive Social Protection" (pib.gov.in): gratuity for fixed-term employees after one year, and the wage definition.
Rules read on 13 November 2026 from the Codes named above. Several amounts are fixed by notifications or rules that are not in the Codes (the gratuity ceiling, the bonus wage limit). Check the current notification before you pay. This site is independent, not connected with any government, and gives information, not legal advice.