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How much gratuity on a ₹25,000 basic salary?
Part of: Changing jobs
By Vijay Singh Sinhmar · Fintech automation specialist, 8 years in finance · Published 2026-10-15
On ₹25,000 a month of basic pay plus DA, gratuity is ₹72,115 after five years, ₹1,44,231 after ten and ₹2,88,462 after twenty — ₹14,423 for every completed year, from the formula 15/26 × last-drawn wages × years. At this salary the ₹20,00,000 ceiling is never reached within a 40-year career.
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 on ₹25,000 basic, year by year
Gratuity is 15 days of last-drawn wages for each completed year of service, counting a month as 26 working days. On ₹25,000 that is ₹25,000 × 15 ÷ 26 = ₹14,423 a year of service, so ten years comes to ₹1,44,231.
It is worked out on the salary you are drawing when you leave, not an average across your career — so the table is what ₹25,000 would pay if it were your basic + DA in your final month.
| Years of service | Gratuity | Note |
|---|---|---|
| 5 years | ₹72,115 | |
| 7 years | ₹1,00,962 | |
| 10 years | ₹1,44,231 | |
| 15 years | ₹2,16,346 | |
| 20 years | ₹2,88,462 | |
| 25 years | ₹3,60,577 | |
| 30 years | ₹4,32,692 |
When the ₹20 lakh ceiling applies
The payout is capped at ₹20,00,000, but at ₹25,000 even 40 years of service gives ₹5,76,923, so the ceiling never comes into play. Each completed year adds the full ₹14,423.
If your basic is less than half of your pay
Since 21 November 2025, the Code on Social Security counts "wages" as basic plus DA, raised to at least half of your total pay when the exclusions (HRA, allowances and the like) are more than half. On a monthly package of ₹62,500 with ₹25,000 basic, wages for gratuity become ₹31,250, and ten years pays ₹1,80,288 rather than ₹1,44,231.
Your payslip shows both figures. The gratuity calculator takes the basic and the whole package and applies the rule for you.
Leaving before five years, and fixed-term contracts
A permanent employee qualifies after five years of continuous service. At 4 years 11 months the amount is ₹0; a final stretch of six months or more counts as a full year only once you qualify, so 9 years 7 months is paid as 10 years: ₹1,44,231.
A fixed-term employee qualifies after one year of the contract, on the same formula: ₹14,423 for one year at ₹25,000, ₹43,269 for three.
The salaries either side
On ₹20,000 basic, ten years pays ₹1,15,385. On ₹30,000 basic, ten years pays ₹1,73,077. Every salary from ₹15,000 to ₹1,00,000 is on one table on the gratuity-by-salary page.
Frequently asked questions
How much gratuity for 10 years on ₹25,000 basic?
₹1,44,231: ₹25,000 × 15 ÷ 26 × 10, for a permanent employee whose last-drawn basic + DA is ₹25,000.
Does 6 months count as a full year for gratuity?
Yes, once you are eligible. A final stretch of six months or more counts as a whole year, so at ₹25,000, 9 years 7 months is paid as 10 years: ₹1,44,231.
Is gratuity taxable?
For a non-government employee covered by the Code, gratuity is tax-free up to ₹20,00,000 across a whole career; anything above that is taxed as salary.
Is gratuity calculated on basic or on CTC?
On wages: basic plus DA, raised to half of your pay if your allowances are more than half. It is never calculated on the whole CTC.
Related
- Gratuity calculator →
- Gratuity at every basic salary from ₹15,000 to ₹1,00,000 →
- How much gratuity on a ₹20,000 basic salary? →
- How much gratuity on a ₹30,000 basic salary? →
- How is gratuity calculated in India? →
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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