Each year of service adds 0.577 of a month's basic + DA, or 4.8% of a year's. The ₹20 lakh ceiling sounds low, but our calculation shows it only binds for long careers on high basic pay: within 30 years, you reach it only if your basic + DA is above ₹1,15,556 a month.
Use the calculator for your exact salary, months and the 50% wage rule.
Open the India gratuity calculator →Last drawn basic + DA, employer covered by the law, completed years, ₹20 lakh ceiling applied.
| Basic + DA | 5 yrs | 7 yrs | 10 yrs | 15 yrs | 20 yrs | 25 yrs | 30 yrs |
|---|---|---|---|---|---|---|---|
| ₹10,000 | 28,846 | 40,385 | 57,692 | 86,538 | 1,15,385 | 1,44,231 | 1,73,077 |
| ₹15,000 | 43,269 | 60,577 | 86,538 | 1,29,808 | 1,73,077 | 2,16,346 | 2,59,615 |
| ₹20,000 | 57,692 | 80,769 | 1,15,385 | 1,73,077 | 2,30,769 | 2,88,462 | 3,46,154 |
| ₹25,000 | 72,115 | 1,00,962 | 1,44,231 | 2,16,346 | 2,88,462 | 3,60,577 | 4,32,692 |
| ₹30,000 | 86,538 | 1,21,154 | 1,73,077 | 2,59,615 | 3,46,154 | 4,32,692 | 5,19,231 |
| ₹40,000 | 1,15,385 | 1,61,538 | 2,30,769 | 3,46,154 | 4,61,538 | 5,76,923 | 6,92,308 |
| ₹50,000 | 1,44,231 | 2,01,923 | 2,88,462 | 4,32,692 | 5,76,923 | 7,21,154 | 8,65,385 |
| ₹60,000 | 1,73,077 | 2,42,308 | 3,46,154 | 5,19,231 | 6,92,308 | 8,65,385 | 10,38,462 |
| ₹75,000 | 2,16,346 | 3,02,885 | 4,32,692 | 6,49,038 | 8,65,385 | 10,81,731 | 12,98,077 |
| ₹1,00,000 | 2,88,462 | 4,03,846 | 5,76,923 | 8,65,385 | 11,53,846 | 14,42,308 | 17,30,769 |
| ₹1,50,000 | 4,32,692 | 6,05,769 | 8,65,385 | 12,98,077 | 17,30,769 | 20,00,000 | 20,00,000 |
| ₹2,00,000 | 5,76,923 | 8,07,692 | 11,53,846 | 17,30,769 | 20,00,000 | 20,00,000 | 20,00,000 |
Download with more tenures: india-gratuity-table-by-salary.csv (CC BY 4.0, please link to this page)
Finding: it doesn't. Years needed to reach ₹20 lakh = ₹20,00,000 × 26 ÷ (15 × basic + DA). At ₹50,000 that is 69 years. Only basic + DA above about ₹1,15,556 reaches the cap within a 30-year career, and above about ₹1,38,667 within 25 years.
| Basic + DA | Years to ceiling |
|---|---|
| ₹50,000 | 69.3 |
| ₹75,000 | 46.2 |
| ₹1,00,000 | 34.7 |
| ₹1,25,000 | 27.7 |
| ₹1,50,000 | 23.1 |
| ₹2,00,000 | 17.3 |
| ₹3,00,000 | 11.6 |
If your basic + DA is less than half of your pay, the Labour Codes add the gap back for gratuity. Example: ₹80,000 total monthly pay, 10 years.
| Basic + DA share | Old basis | Labour Code basis | Extra |
|---|---|---|---|
| 20% (₹16,000) | ₹92,308 | ₹2,30,769 | ₹1,38,462 |
| 30% (₹24,000) | ₹1,38,462 | ₹2,30,769 | ₹92,308 |
| 40% (₹32,000) | ₹1,84,615 | ₹2,30,769 | ₹46,154 |
| 50% (₹40,000) | ₹2,30,769 | ₹2,30,769 | ₹0 |
The Ministry of Labour says the Codes are not retrospective, and final rules on earlier service were still awaited when we checked. See the full analysis.
With last drawn basic + DA of ₹30,000 and 5 completed years at an employer covered by the law: ₹30,000 × 15 ÷ 26 × 5 = ₹86,538. If your salary figure is CTC, use only basic + DA, or apply the Labour Code 50% rule.
With last drawn basic + DA of ₹50,000 and 5 completed years at an employer covered by the law: ₹50,000 × 15 ÷ 26 × 5 = ₹1,44,231. If your salary figure is CTC, use only basic + DA, or apply the Labour Code 50% rule.
With last drawn basic + DA of ₹25,000 and 10 completed years at an employer covered by the law: ₹25,000 × 15 ÷ 26 × 10 = ₹1,44,231. If your salary figure is CTC, use only basic + DA, or apply the Labour Code 50% rule.
With last drawn basic + DA of ₹50,000 and 10 completed years at an employer covered by the law: ₹50,000 × 15 ÷ 26 × 10 = ₹2,88,462. If your salary figure is CTC, use only basic + DA, or apply the Labour Code 50% rule.
With last drawn basic + DA of ₹40,000 and 15 completed years at an employer covered by the law: ₹40,000 × 15 ÷ 26 × 15 = ₹3,46,154. If your salary figure is CTC, use only basic + DA, or apply the Labour Code 50% rule.
With last drawn basic + DA of ₹75,000 and 20 completed years at an employer covered by the law: ₹75,000 × 15 ÷ 26 × 20 = ₹8,65,385. If your salary figure is CTC, use only basic + DA, or apply the Labour Code 50% rule.
On last drawn basic pay plus dearness allowance, not CTC. Under the Labour Codes in force from 21 November 2025, if allowances are more than half of total pay, the excess is added back to the wage used for gratuity.
15 days' wages for each year, which for monthly-paid staff is 15 ÷ 26 = 0.577 of a month's basic + DA, or 4.8% of a year's basic + DA.