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Severance Package Calculator
Estimate a severance package by combining gratuity, capped severance pay, and one month's notice pay based on your CTC and years of service.
How to Use Severance Package Calculator
- 1Enter your annual CTC (Rs.)
- 2Enter your years of service
- 3Click Generate
- 4Review the gratuity, severance pay, notice pay, and estimated total package
Frequently Asked Questions
Gratuity = (Basic ÷ 26) × 15 × Years of Service, where Basic is assumed to be 40% of your annual CTC — the standard formula under India's Payment of Gratuity Act.
Under the Payment of Gratuity Act, gratuity is generally payable only after 5 years of continuous service. This tool calculates the formula for any number of years you enter — it does not check or enforce that eligibility rule, so verify your own eligibility separately.
Severance Pay = one month's salary × years of service, capped at a maximum of 6 months — an illustrative formula, not a statutory entitlement. Actual severance depends entirely on your employment contract or company policy.
No — only the gratuity component has a statutory basis (subject to the 5-year eligibility rule above). Severance and notice pay amounts here are estimates; your actual entitlement depends on your contract, company policy, and applicable labour law. Confirm with HR or a legal advisor.
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