By Team Edtoolkits · Finance & accounting
Work out gratuity under the Payment of Gratuity Act and the new Labour Codes: 15/26 of wages for each year, the five-year (or one-year fixed-term) rule, the 50% wage rule, the ₹20 lakh cap and the tax-free part.
Use the guide alongside the working tool.
Open Gratuity Calculator →Pick the exam and document
Enter your last monthly basic + DA and, if you know it, your total monthly pay (for the Labour Codes' 50% wage rule).
Frame and clean up
Set your years and extra months of service, whether your employer is covered by the gratuity law, your job type, sector and why you are leaving.
Create and check
See the gratuity, the wages and years counted, and the tax-free and taxable parts. Copy the calculation for your records.
Privacy and limits
A guide based on the Payment of Gratuity Act and the Code on Social Security 2020 (in force from 21 November 2025): a final part-year of more than six months counts as a year, fixed-term employees qualify after one year, and the ₹20 lakh ceiling and tax-free limit apply. Your employer's rules, court rulings on 240-day years and any later notifications can change the result. Not tax or legal advice.
Ready to apply this workflow?
Try Gratuity Calculator →Explore a related workflow
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Keep your original files and review the result. Found unclear instructions? Contact Team Edtoolkits.