Updated with New Labour Codes & Tax Rules
Accurate • Updated 2025 • 100% Free
Permanent: 5 years (or 4 years + 240 days)
Contract/Fixed-Term: Only 1 year of service
Now includes Basic + DA + Retaining Allowance and must be ≥50% of total CTC — increasing payout for many employees.
₹25,00,000 for private sector (increased in Budget 2025 to match Central Govt).
6+ months in final year = full year rounded up
e.g. 10 years 8 months → counted as 11 years
Only in case of termination due to moral turpitude or willful damage. Otherwise, full amount is payable.
Permanent employees: No gratuity unless 4 years + 240 days completed.
Contract employees: Eligible after 1 year.
Yes, if eligibility is met. Employer must pay within 30 days of it becoming due, else 10% interest applies.
Approach the Controlling Authority under Payment of Gratuity Act within 90 days. Keep payslips, appointment letter, and service proof.