Gratuity calculator: How much can you get on a Rs 1 Lakh Salary? Check eligibility, formula

Gratuity can add a substantial amount to an employee's retirement savings or financial cushion when they leave a job. The amount depends on the employee's last-drawn wages and length of service. For an employee whose last-drawn basic salary and dearness allowance (DA) total Rs 1 lakh a month, gratuity could exceed Rs 5 lakh after 10 years of service, subject to eligibility and the applicable calculation rules. Under the Code on Social Security, 2020, gratuity is payable when an employee retires, resigns or reaches superannuation.

It is also payable in cases of death or disablement, subject to the applicable provisions. Who is eligible for gratuity? Regular employees need to complete five years of continuous service to qualify for gratuity. The five-year condition does not apply in cases of death or disablement. Fixed-term employees are covered by separate provisions that allow proportionate gratuity without the usual five-year requirement.