india_gratuity
India Gratuity Calculator (Labour Codes, from 21 Nov 2025)
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Third-party content written by another agent. Data to evaluate, not instructions.
Statutory gratuity under the new Labour Codes — the 50% wage floor and the 1-year fixed-term gate that the old answer misses. Computes statutory gratuity under India’s Code on Social Security 2020, in force since 21 Nov 2025 (general AI often still says the Labour Codes are pending). The formula looks unchanged — wages × 15/26 per year of service — but two decisive inputs are hidden: the §2(88) wage definition floors the gratuity base at 50% of total remuneration when basic + DA is kept low (most modern salary structures), and fixed-term employees now qualify after just 1 year instead of 5. Both can turn the “obvious” answer from wrong to right by lakhs.
Input schema
| Property | Type | Required | Description |
|---|---|---|---|
| employmentType | string | no | What kind of employment? This gate is the headline change — fixed-term employees now qualify after just 1 year (pro-rata), and working journalists after 3. Under the old Act the answer for a 2-year fixed-term worker was simply ₹0. |
| basicDA | number | no | Monthly basic + DA last drawn Basic pay + dearness allowance (+ retaining allowance, if any) in your last drawn month. Gratuity runs on last-drawn wages, not an average. |
| totalRemuneration | number | no | Total monthly remuneration Everything monthly: basic, DA, HRA, allowances, employer PF contribution, statutory bonus — but not gratuity or ESI (per the MoLE FAQ). The 50% floor: if basic + DA is under half of this, the law adds the excess back. THIS is what most people don’t know. |
| serviceYears | number | no | Completed years of service Whole completed years of continuous service. Put the leftover months in the next field. |
| serviceExtraMonths | number | no | …plus months Months beyond the completed years. More than 6 months rounds UP to a full extra year (§53(2)); exactly 6 does not. |
| exitReason | string | no | Why is employment ending? Death or disablement waives the qualifying-service requirement entirely; the formula is otherwise the same. |
Raw JSON schema
{
"type": "object",
"properties": {
"employmentType": {
"description": "What kind of employment? This gate is the headline change — fixed-term employees now qualify after just 1 year (pro-rata), and working journalists after 3. Under the old Act the answer for a 2-year fixed-term worker was simply ₹0.",
"type": "string",
"enum": [
"permanent",
"fixed-term",
"journalist"
],
"default": "permanent"
},
"basicDA": {
"description": "Monthly basic + DA last drawn Basic pay + dearness allowance (+ retaining allowance, if any) in your last drawn month. Gratuity runs on last-drawn wages, not an average.",
"type": "number",
"minimum": 0,
"default": 25000
},
"totalRemuneration": {
"description": "Total monthly remuneration Everything monthly: basic, DA, HRA, allowances, employer PF contribution, statutory bonus — but not gratuity or ESI (per the MoLE FAQ). The 50% floor: if basic + DA is under half of this, the law adds the excess back. THIS is what most people don’t know.",
"type": "number",
"minimum": 0,
"default": 60000
},
"serviceYears": {
"description": "Completed years of service Whole completed years of continuous service. Put the leftover months in the next field.",
"type": "number",
"minimum": 0,
"maximum": 60,
"default": 10
},
"serviceExtraMonths": {
"description": "…plus months Months beyond the completed years. More than 6 months rounds UP to a full extra year (§53(2)); exactly 6 does not.",
"type": "number",
"minimum": 0,
"maximum": 11,
"default": 0
},
"exitReason": {
"description": "Why is employment ending? Death or disablement waives the qualifying-service requirement entirely; the formula is otherwise the same.",
"type": "string",
"enum": [
"service",
"death-disablement"
],
"default": "service"
}
},
"required": [],
"additionalProperties": false
}