Gratuity

leaving your job in May entitles you to gratuity depending on your employment type and tenure. The 50% Wage Rule: Gratuity is calculated using your last drawn salary (Basic + Dearness Allowance). Under the 2026 codes, your Basic Pay must be at least \(50\%\) of your total CTC, which generally results in a much higher payout than in previous years The 240-Day Clause: If you are a permanent employee and have worked for at least 4 years and 240 days in your fifth year, you often legally qualify for gratuity. The 5-year requirement for permanent employees is completely waived in cases of death or disablement If you meet these criteria, your employer is legally mandated to process your gratuity and other full-and-final settlement dues quickly...

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the new wage code has not yet been formally implemented/applicable to that establishment/state category, gratuity is usually calculated under the existing practice: typically on Basic + Dearness Allowance (DA). If the labour codes have become enforceable for that establishment and the salary structure has been revised accordingly, then gratuity may increase because “wages” under the code have a broader definition and allowance exclusions are capped.