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How much gratuity at every basic salary?
Part of: Changing jobs
By Vijay Singh Sinhmar · Fintech automation specialist, 8 years in finance · Published 2026-10-15
Gratuity is 15/26 of your last-drawn monthly basic + DA for every completed year of service, capped at ₹20,00,000. On ₹25,000 basic that is ₹1,44,231 after ten years; on ₹50,000 it is ₹2,88,462. The table gives every salary from ₹15,000 to ₹1,00,000 a month after 5 to 30 years.
Educational information, not investment advice · Muktify is not SEBI-registered
Gratuity Calculator
What you're owed when you leave — (15 ÷ 26) × last-drawn wages × years of service, under the Code on Social Security.
Basic + dearness allowance. If you leave the package blank below, this is used as your wages.
Your CTC / all cash pay for the month, including the employer's PF if it is part of the package. Leave blank if you already know the wages figure. When filled, wages become at least half of this — the Code's 50% rule, the same one PF uses.
Your gratuity
₹1.44L
On wages of ₹25,000 a month, counted as 10 years
How this works
- Code on Social Security, 2020 (in force 21 Nov 2025): (15 ÷ 26) × last-drawn wages × years.
- Wages are basic + DA, but never less than half of all pay when you enter a package. Gratuity itself is left out of that test, following the Labour Ministry's March 2026 FAQ.
- Permanent: 5 years of service. Fixed-term: 1 year under the contract. A final 6+ months counts as a full year.
- Ceiling ₹20.00L; the same amount is the tax-free limit for private-sector employees.
- Employers outside the Code (under 10 employees) pay under your contract — check with HR.
Your employer's policy, coverage under the Code and a better contract term decide the final amount.
Educational estimates from your own inputs and assumptions — not investment advice. Muktify is not SEBI-registered.
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Gratuity at every salary and length of service
Each row is a last-drawn monthly basic + DA for a permanent employee, worked through the Code on Social Security formula: 15/26 × wages × completed years, with a final six months or more counting as a whole year. Tap a salary for its own page.
| Basic + DA a month | 5 years | 10 years | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|---|---|
| ₹15,000 | ₹43,269 | ₹86,538 | ₹1,29,808 | ₹1,73,077 | ₹2,16,346 | ₹2,59,615 |
| ₹20,000 | ₹57,692 | ₹1,15,385 | ₹1,73,077 | ₹2,30,769 | ₹2,88,462 | ₹3,46,154 |
| ₹25,000 | ₹72,115 | ₹1,44,231 | ₹2,16,346 | ₹2,88,462 | ₹3,60,577 | ₹4,32,692 |
| ₹30,000 | ₹86,538 | ₹1,73,077 | ₹2,59,615 | ₹3,46,154 | ₹4,32,692 | ₹5,19,231 |
| ₹40,000 | ₹1,15,385 | ₹2,30,769 | ₹3,46,154 | ₹4,61,538 | ₹5,76,923 | ₹6,92,308 |
| ₹50,000 | ₹1,44,231 | ₹2,88,462 | ₹4,32,692 | ₹5,76,923 | ₹7,21,154 | ₹8,65,385 |
| ₹75,000 | ₹2,16,346 | ₹4,32,692 | ₹6,49,038 | ₹8,65,385 | ₹10,81,731 | ₹12,98,077 |
| ₹1,00,000 | ₹2,88,462 | ₹5,76,923 | ₹8,65,385 | ₹11,53,846 | ₹14,42,308 | ₹17,30,769 |
The ₹20 lakh ceiling
No payout goes above ₹20,00,000. . Lower salaries never reach it in a normal career.
What counts as wages
Basic plus DA — raised to half of your total pay if your allowances make up more than half. Gratuity is never calculated on the whole CTC. The gratuity calculator applies this rule from your basic and your package.
Frequently asked questions
What is the formula for gratuity?
15 × last-drawn monthly wages × completed years of service ÷ 26, capped at ₹20,00,000. Wages means basic plus DA, raised to half your total pay if allowances exceed half.
How many years do I need for gratuity?
Five years of continuous service for a permanent employee; one year for a fixed-term employee under the Code on Social Security.
At what basic salary does the ₹20 lakh ceiling matter?
Within a 30-year career it never binds below a basic of about ₹67,000; at ₹1,00,000 it cuts in from the 35th year, and at ₹75,000 from the 47th.
Does a part year count towards gratuity?
Yes. A final part year of six months or more is counted as a full year, so 9 years and 7 months is paid as 10 years; under six months is dropped.
Related
- Gratuity calculator →
- How is gratuity calculated in India? →
- Laid off? What money you are owed, and how long it lasts →
Keep reading
Last updated 2026-10-15. Figures reflect FY 2026-27 and are educational estimates, not advice. Muktify is not SEBI-registered and never recommends or ranks any instrument.
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