Gratuity 2026 Old vs New Calculator

Formula used

For a monthly-rated employee scenario, gratuity is estimated as eligible monthly wage x 15/26 x eligible service years, subject to the entered cap. The comparison changes only the eligible wage base. It does not determine whether a person is legally eligible or reconstruct the statutory wage definition from a payslip.

Example calculation

At Rs 1,00,000 monthly remuneration, Rs 40,000 current Basic+DA and a 50% new wage-base scenario, the comparison uses Rs 40,000 versus Rs 50,000 before applying 15/26, service years and the cap.

How to use this calculator

1. Enter the monthly remuneration amount you want to test.
2. Enter the current Basic + DA used for gratuity.
3. Choose a new wage-base percentage scenario.
4. Enter only the eligible service years for your case.
5. Verify and enter the applicable cap, then compare the two results.

Important assumptions

• The 15/26 monthly-rated employee formula is used for both scenarios.
• The entered service period is assumed to be legally eligible.
• The wage-share input is a planning scenario and not an interpretation of an individual payslip.
• Tax treatment and employer benefits above the statutory formula are excluded.

Common mistakes to avoid

• Entering CTC without checking which components form statutory wages.
• Assuming the calculator determines eligibility.
• Ignoring the applicable cap or a more generous employer policy.
• Applying a disputed service-rounding shortcut without checking the governing rule.

When this tool is useful

• When you want a fast estimate before making a financial or salary decision.
• When you want to compare different assumptions in seconds.
• When you want to understand the formula behind the result.