Test a limited gratuity formula against entered wage and service details, with dated Ministry sources and clear exclusions; it is not an eligibility decision.
How the worksheet works
Shows a limited monthly-rate 15/26 illustration and the ₹20 lakh maximum stated as current in the Ministry FAQ of 30 December 2025. It does not cover all employee categories, confirm a later ceiling notification, determine eligibility, or establish the applicable wage base.
Inputs and privacy
Calculations run in the browser. Entered values are not sent to the API, stored, added to the URL, or used as analytics events.
Limits
Educational arithmetic only. Verify contracts, tax questions, and employer-specific terms against current documents and qualified sources.
Official reference
Questions worth checking
- What wage amount should I enter?
- Enter the monthly wage base that you have checked against the applicable statutory definition and your employment records. Do not assume that take-home pay, total CTC, or every allowance automatically equals the wage amount used for gratuity. The labour-code FAQ and the Code on Social Security provide the source context, but this worksheet does not reconstruct every wage component or decide how a specific allowance is treated. If your payslip uses several salary components or has changed over time, check the governing rule and ask payroll for its calculation basis before relying on the estimate.
- How does the general service threshold work here?
- For the ordinary category, the worksheet marks the five-year threshold only after the entered service reaches sixty months. The arithmetic uses fifteen days of the entered monthly wage base for each formula year, divided by twenty-six. In this simplified ordinary case, a remaining service fraction greater than six months is rounded up to the next year; a fraction of six months or less is not. That formula is an estimate of the stated inputs, not a finding that a particular termination qualifies or that the entered service dates are correct.
- Why is fixed-term service treated differently?
- The Ministry FAQ describes gratuity for fixed-term contract expiry as payable on a pro-rata basis and identifies a one-year threshold. This tool therefore accepts exact entered months for that category and applies a fraction of a year to the formula after twelve months. Confirm that the employment arrangement legally qualifies as fixed-term employment and that the contract actually expired in the relevant way. The tool does not decide status, service continuity, exclusions, or other facts that can affect entitlement. Death and disablement use a separate threshold path in the worksheet.
- What does the maximum amount mean?
- The cited Ministry FAQ states a ₹20 lakh maximum as current at the date of that source. The worksheet applies that ceiling to the formula output so a high estimate is not displayed as payable above the stated cap. A source date matters: later legislation, notifications, or amendments could change the applicable limit. The ceiling is not a promised payment, a minimum, or a substitute for eligibility analysis. Compare the date of the source with the employment end date and verify current rules with the responsible authority or a qualified adviser.
- Which cases are not fully represented?
- The calculator is a monthly-rate illustration. It does not model seasonal or piece-rated wage methods, disputed service periods, forfeiture, multiple employers, death-related nominee distribution, detailed wage reconstruction, or every exception and transitional issue. It also does not calculate interest, tax, payroll adjustments, or a final settlement. Use the result to identify what information is missing, then compare the inputs with appointment records, payslips, service records, and the employer's written calculation. For an actual claim, confirm the applicable law and facts rather than treating a rounded estimate as a final entitlement.