Salary IntelligenceExit benefits · India 2026

Exit benefits · India 2026

Gratuity Calculator India

Estimate statutory gratuity from your last-drawn gratuity wage and service period using the Social Security Code framework now applicable from 21 November 2025. Compare regular and fixed-term employee eligibility without assuming that headline CTC equals the statutory wage base.

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Your service & wage

2026 rule context: the Labour Ministry says gratuity under the Social Security Code applies from 21 Nov 2025. Fixed-term employees directly engaged by an employer can qualify after one year of contract service. This calculator keeps the wage assumption editable because the Code wage definition can change the amount versus old Basic+DA shortcuts.

Estimated statutory gratuity

₹1,44,231

Eligibility gate reached under the selected employment type.

Service entered

5.00 yrs

Service used

5.00 yrs

15-day wage

₹28,846

Reverse plan

Required monthly gratuity wage

₹1,73,333

Reverse solving is a scenario tool only; employers do not set statutory wages to hit a target gratuity.

Formula used: monthly gratuity wage × 15 ÷ divisor × counted service. Better contractual gratuity terms may apply. Income-tax exemption is a separate calculation; current AY 2026–27 e-filing validations use category-specific ceilings, so do not treat this gross estimate as automatically tax-free.

Use it for a real decision

What this calculator is trying to answer

  • Check the ordinary five-year continuous-service gate separately from fixed-term employment's one-year contract-service rule.
  • See exactly how completed years and a part-year above six months affect the regular-employee service count.
  • Edit the wage divisor instead of hiding a payroll assumption inside the result.
  • Carry the estimate into Jobiba's Exit & Switch Planner so gratuity sits beside notice buyout, leave encashment and switch economics.

Worked thinking

Do not calculate gratuity from CTC by reflex

Suppose your annual CTC is ₹12 lakh but the wage amount relevant for gratuity is ₹50,000 a month. At five counted years and a 26-day divisor, the planning estimate is about ₹1.44 lakh—not a percentage of the ₹12 lakh headline package. The wage definition and your employer's better contractual terms can change the real payable amount.

The useful part is not the exact rupee at the end. It is seeing which assumptions move the answer: PF basis, variable pay, gratuity, tax, commute cost, or the salary band for your actual role.

Questions people ask before accepting an offer

What changed for gratuity from 21 November 2025?

The Ministry of Labour says gratuity calculation under the Social Security Code applies from 21 November 2025. The Code's wage definition now matters for the gratuity wage base, so old Basic+DA shortcuts should not be assumed without checking payroll treatment.

How many years are required for gratuity in India?

For the ordinary case, the Code provides gratuity after at least five years of continuous service, with statutory exceptions such as death or disablement. The Labour Ministry says a directly engaged fixed-term employee can be eligible after one year of contract service.

How does Jobiba count a partial year?

For regular employment, the calculator counts every completed year plus one more year when the remaining completed service exceeds six months. For fixed-term employment it shows a pro-rata service scenario after the one-year eligibility point.

Is the calculator result fully tax-free?

Not automatically. Income-tax exemption depends on employment category, the amount received and statutory ceilings. Jobiba keeps the gratuity calculation separate from tax treatment so a gross estimate is not presented as guaranteed exempt income.

Keep going

Turn the number into a career decision

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Planning note: Jobiba’s India payroll tools are educational estimates, not payroll, tax, legal or financial advice. Company salary structures and statutory treatment can differ. Check your offer letter, Form 16, payslip and employer policy before making a financial commitment.