How Much Gratuity Will You Get?
Gratuity is a legal entitlement, not a discretionary bonus — and the formula is simple enough to calculate yourself: (15 ÷ 26) × Last Drawn Basic+DA × Completed Years of Service, payable after 5 years of continuous service (waived for death/disability). This guide walks through worked examples, the ₹20 lakh tax-exemption ceiling (with anything above taxed at slab rate), the 30-day payment deadline with 10% interest penalty for delays, and a development worth tracking: the new Labour Codes’ “50% of CTC as wages” rule, which could increase the Basic+DA component used in this formula — and therefore future gratuity payouts — for many employees as employers adjust salary structures.