Gratuity and PF calculator
Are you eligible for gratuity, how much will you get, and what could your PF grow to? Add your dates and pay to see it, with the rules explained simply.
The short answer
Gratuity = last monthly wages × 15 ÷ 26 × years of service. Permanent staff usually need 5 years of continuous service; a part year of more than 6 months counts as a full year. Fixed-term staff become eligible after 1 year. Under the Labour Codes, at least half your pay counts as wages, which can raise the amount. It's tax-free up to ₹20 lakh in total and should be paid within 30 days of leaving.
An example
You joined on 7 January 2019 and leave on 30 November 2026: 7 years and 10 months, counted as 8 years. Your basic is ₹60,000 and your total monthly pay ₹1,30,000, so half of it, ₹65,000, counts as wages. Gratuity: ₹65,000 × 15 ÷ 26 × 8 = ₹3,00,000. On basic alone it would be ₹2,76,923.
Your PF
You and your employer each put in 12% of your basic every month. Part of your employer's share (8.33% on up to ₹15,000) goes to the pension scheme (EPS), not your PF balance. PF earns 8.25% a year (the rate for 2025-26). Keep one UAN for life, so your PF moves with you when you switch jobs.
Questions people ask
I have 4 years and 8 months. Do I get gratuity?
Many employers and courts count 4 years and 240 days or more as 5 years. Ask HR in writing.
Is gratuity part of my CTC?
Often, yes. Many offers include it in the CTC, but you only get it if you stay long enough. Offer X-Ray marks it as retirement money, not monthly cash.
Can I take out my PF when I leave?
The rules changed in late 2025. Most people can take out up to 75% if they're out of work, and the rest after 12 months without a job. Check the EPFO portal for the latest rules, and remember that moving your PF to the new employer is never taxed.
Official sources
The rules behind these numbers come from official government websites. Check them yourself any time:
- PF and pension: epfindia.gov.in (EPFO)
- Gratuity, notice and the Labour Codes: labour.gov.in (Ministry of Labour and Employment)
- Income tax rules: incometax.gov.in (Income Tax Department)
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