Calculator
Gratuity
Works out gratuity under the Code on Social Security, 2020: 15 days' wages for each year counted, with a day's wage taken as the monthly wage ÷ 26.
Enter your figures to see the result.
For piece-rated employees the Code uses a three-month average of total wages, and for seasonal employees 7 days' wages per season. This calculator covers monthly-rated employees only.
Central sphere. Official text reproduced from the Gazette of India, India Code and State Government sources. This is not legal advice; check the source PDF before relying on any provision.
The limit on gratuity: ₹20,00,000
The Code says gratuity cannot exceed an amount the Central Government notifies (s. 53(3)). The Labour Ministry's FAQs on the Labour Codes say: “The maximum gratuity is as notified by the Central Government which is currently ₹ 20 lakhs.” (FAQ 12: official copy · our copy)
That figure comes from S.O. 1420(E) of 29 Mar 2018 under the old Payment of Gratuity Act, which says the amount “shall not exceed twenty lakh rupees” (official copy · our copy). On 1 Nov 2026, this library went through every Labour Ministry item in the Gazette of India since the Code began and found no new notification under the Code itself. The Code keeps notifications made under the old Acts in force until they are replaced, where they are not contrary to it (s. 164(2)(a)).
Service before 21 November 2025
Asked whether earlier service is worked out under the old Act, the Ministry's later FAQs reply: “The employee will be paid gratuity based on the rate of wages last drawn by the employee at the time of superannuation or retirement or resignation or death etc, on and after 21.11.2025 as per the provisions of Code on Social Security, 2020.” (FAQ 17, as on 16 March 2026: official copy · our copy)
FAQs are the Ministry's explanation, not the law.