Gratuity After 1 Year Service
Under the older narrative, most employees associated gratuity with a five-year wait. Under the new framework, fixed-term employees are the group most often linked to gratuity eligibility after one year of service. That is why contract duration and employment type matter so much on this page.
Estimated Gratuity
Eligibility under new code
Eligible
Under old law
₹0
Under old law you'd get ₹0.
This quick calculator uses the standard gratuity formula: Basic ÷ 26 × 15 × years of service.
Who Qualifies for Gratuity After 1 Year?
The one-year rule is primarily discussed for fixed-term employees, not every permanent employee in India. If you are on a fixed-duration contract and have completed one year of continuous service, this is the key situation to evaluate with HR or legal support.
How is Gratuity Calculated Under New Labour Code?
The standard formula is basic salary divided by 26, multiplied by 15, then multiplied by years of service. For example, a fixed-term worker with ₹25,000 monthly basic and 1.5 years of service would estimate gratuity using that exact formula.
Is Gratuity Taxable?
Tax treatment depends on the type of employee, the amount received, and the applicable exemption rules in force. The calculator here is for gratuity entitlement and amount estimation, not final tax filing.
You can continue with the full-and-final calculator, the main salary calculator, or the FAQ page.