Gratuity Calculator
Calculate gratuity obligations under old vs new rules, including the 50% wage rule impact and fixed-term employee eligibility.
Employee Details
Basic salary plus Dearness Allowance per month
Total Cost to Company per month (all components)
Completed years of continuous service (0.5 increments)
Fixed-term employees get pro-rata gratuity from day 1 under new rules
Old Rules Gratuity
₹1,73,076.923
Payment of Gratuity Act, 1972
New Rules Gratuity
₹1,73,076.923
Code on Social Security, 2020
No change in gratuity amount
Difference between new and old rules calculation
Old vs New Rules Comparison
Full Breakdown
| Parameter | Value |
|---|---|
| Monthly Basic + DA (input) | ₹50,000 |
| Monthly CTC | ₹1,00,000 |
| 50% of CTC | ₹50,000 |
| Wage base (new rules) | ₹50,000 |
| Years of service | 6 |
| Employee type | Permanent |
| Old rules gratuity | ₹1,73,076.923 |
| New rules gratuity | ₹1,73,076.923 |
Statutory Reference: Section 4, Code on Wages, 2019 read with Section 53, Code on Social Security, 2020
Disclaimer: This calculator provides indicative estimates based on the formula prescribed under the Payment of Gratuity Act, 1972 and the proposed Code on Social Security, 2020. The new Labour Code rules are not yet notified and may change upon final notification. Actual gratuity amounts may vary based on specific employment terms, state-level rules, and judicial interpretations. This tool does not constitute legal advice. Consult KSK Advocates for organisation-specific guidance.