Planning to switch jobs in 2026? Check how much gratuity you’ll get on Rs 45,000 and Rs 75,000 basic salary

It is a consolidated payment received by an employee for doing his constant duty at the best service of the employer.

 

The one-year gratuity benefit is applicable only under certain conditions. An employee must complete one full year of continuous service without significant breaks or extended leaves. Any long absence or gap in service may break continuity, making gratuity eligibility more complex.

For instance, if an employee resigns, gratuity is calculated from the date of joining until the last working day with the organisation.

As per the Code on Social Security, 2020, gratuity eligibility norms have been relaxed for select employee categories. Fixed-term employees are now eligible for gratuity after one year of continuous service, replacing the earlier minimum requirement of five years.

The same provision has been extended to contract workers, while permanent employees remain subject to the five-year eligibility criterion.

Professionals who switch jobs often and those working on contract or short-term roles will benefit the most from this rule. It offers extra financial protection even if they stay with an employer for a short period.

If your basic salary is Rs 45,000, then after completion of one year of work, the gratuity amount is going to be roughly equal to Rs 25,962. It shows that the employees serving for the lesser duration are directly entitled to the perks now.

Likewise, if your basic salary is Rs 45,000, the gratuity you receive after one year of service comes to approximately Rs 1,29,808.

In case your basic salary amounts to Rs 75,000, the gratuity after one year of service will be around Rs 43,270.

Likewise, if your basic salary is Rs 75,000, the gratuity you receive after one year of service amounts to nearly Rs 2,16,346.

The gratuity calculator mentioned below allows users to effortlessly estimate their payable gratuity. The calculation can be done using the following formula.

(Last Drawn Salary x Number of Years of Service) X 15/26

Here, 15 refers to 15 days’ wages per year, and 26 refers to 30 days in a month, excluding Sundays.

Using this formula, any employee, whether permanent or contract worker, can easily calculate the exact gratuity amount they are entitled to receive after completing one year of service

Under the new Labour Code, a month is treated as having 26 working days after excluding weekly holidays. Since gratuity is calculated based on actual paid working days, this figure is used in the formula.

Like, if an employee earns a basic salary of Rs 45,000 and exits the job after completing one year of service, the gratuity amount can be quickly calculated using the same formula where 26 is taken as the divisor.

An important advantage is that if a person has been employed in a company for more than half a year, it is considered as a whole year. In other words, even those employees who worked for only 11 months can still qualify for gratuity.

The most considerable benefit is that gratuity is entirely tax-free, which is a significant relief for the workers who are constantly changing jobs.

(Note: This article is based on general information. Actual calculations may vary depending on specific policies and conditions.)