Take a Rs 70,000 monthly salary with Rs 30,000 basic and excluded components of Rs 40,000 over 10 years.
Old rule: Gratuity was Rs 1,73,076 based on a Rs 30,000 basic pay.
New rule: With the 50% calculation, basic rises to Rs 35,000, pushing gratuity to Rs 2,01,923, a gain of Rs 28,847.
This 16% jump applies because excluded components exceeded half your total pay, triggering the add-back provision.
New Labour Law 2025: Gratuity Calculator for CTC of Rs 6 lakh, Rs 12 lakh and Rs 24 lakh
