Am I eligible for gratuity, and how is it calculated?

Description

You are leaving a job, retiring, or your employment term is ending, and you want to know whether you are entitled to gratuity and how much. The rules changed when the Code on Social Security, 2020 came into force in November 2025, including new rights for fixed term employees. This answer explains who is eligible, how gratuity is calculated with a worked example, the ceiling, when it can be forfeited, and how to claim it if your employer delays.

What the answer covers

• Minimum service rules, including the new rule for fixed term employees
• The calculation formula with a worked example
• What counts as wages, and the 50% rule
• The ceiling and the time limit for payment
• When gratuity can be forfeited
• How to claim and where to complain

General legal information, not legal advice. Instant PDF after payment.