Gratuity eligibility and formula
Modern gratuity calculation is not safely reduced to 'basic salary × years'.
SalaryPath uses the verified statutory-wage basis, the 15/26 calculation, ordinary service rounding where applicable, pro-rata handling for supported fixed-term/death cases, and the current statutory cap in the rules engine.
Check the calculator's source links for the exact rule records used.
What makes gratuity more than a simple salary multiple
Gratuity depends on the applicable statutory wage basis, eligible service and the governing rule set. A shortcut such as “basic salary × years” can miss service rounding, statutory caps, fixed-term treatment or changes in the statutory wage definition.
SalaryPath uses a versioned gratuity engine tied to the official source trail. The calculator exposes the wage input, recognised service and warnings rather than hiding the assumptions. This is especially useful when checking an employer’s exit estimate or comparing gratuity included inside CTC with the actual statutory calculation.
Eligibility can still depend on employment category and the circumstances of termination. Use the linked Ministry of Labour sources and the calculator warning state when the case falls outside the supported ordinary scenario.
Checks before relying on the result
- Use the statutory wage basis rather than headline CTC
- Check recognised service and any rounding rule
- Review the statutory cap and employment category