How is Gratuity calculated in India?

Gratuity is calculated using the formula: (15 x Last Drawn Basic Salary & DA x Completed Years of Service) / 26. Under the Payment of Gratuity Act, 1972, the maximum tax-exempt limit is ₹20 Lakhs.

What is the time limit to complete a POSH inquiry?

Under the POSH Act, the Internal Complaints Committee (ICC) must complete its inquiry within 90 days. The employer must act on the recommendations within 60 days of receiving the report.

Who qualifies as a Workman under the Industrial Disputes Act?

Any person employed in an industry to do manual, unskilled, skilled, technical, operational, or clerical work qualifies as a workman. Individuals in managerial, administrative, or supervisory roles earning over ₹10,000 (historically) or ₹18,000 under the new Codes are generally excluded.

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Labour & Employment Law

An authoritative legal education initiative mapping statutory severance, industrial relations forums, and modern corporate HR compliance.

Gratuity & Severance Engine

Estimate statutory dues upon resignation or termination under the Payment of Gratuity Act and Industrial Disputes Act (Sec 25F).

Last Drawn Monthly Salary (Basic + DA) (₹)

Completed Years of Continuous Service

Employment Category

Legal Forum Locator

Determine the appropriate legal jurisdiction for employment disputes based on statutory definitions.

Nature of Core Duties

Monthly Salary Level

Employer Sector

The 4 Labour Codes (Transition Matrix)

Code on Wages, 2019

50% Wage Rule: Basic Salary must be at least 50% of gross (impacting PF/Gratuity deductions).
F&F Settlement: Full and final settlement mandated within 2 working days of removal/resignation.
Consolidates Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, etc.

Industrial Relations Code, 2020

Retrenchment Threshold: Raised to 300 workers for requiring prior govt. permission to lay-off/close.
Strikes: 14-day notice mandatory for strikes across all establishments.
Introduction of "Worker Re-skilling Fund" financed by employer.

Code on Social Security, 2020

Gig Workers: First-time statutory recognition and welfare schemes for platform/gig workers.
Fixed-Term Gratuity: Pro-rata gratuity eligible after 1 year (removes 5-year requirement for fixed contracts).

OSHWC Code, 2020

Working Hours: Standardized to max 8 hours/day or up to 12 hours/day with 4-day work weeks (by consent).
Overtime: Mandatory double wage rate for overtime.
Mandatory annual health check-ups for employees above a certain age.

POSH Act (Workplace Harassment) Compliance

ICC Constitution Rules (10+ Employees)

Presiding Officer: Must be a senior-level woman employee at the workplace.
Composition: At least 50% of total ICC members must be women.
External Member: One member must be from an NGO or an expert familiar with sexual harassment issues (to prevent internal bias).

Strict Inquiry Timeline

Complaint Filing

Within 3 months from the date of the incident.

Inquiry Completion

ICC must complete the inquiry strictly within 90 days.

Action Execution

Employer must act upon the ICC's recommendations within 60 days of receiving the report.

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