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Termination Calculator

Calculate severance pay, notice period compensation, and final settlement

₹ 50,000
5 years

Termination Settlement Summary

Total Settlement Amount
₹ 3,45,000
Payable within 30 days of termination
Notice Pay Compensation
₹ 50,000
Severance Pay
₹ 2,15,000
Gratuity Amount
₹ 57,692
Leave Encashment
₹ 25,000

Monthly Equivalent

Equivalent to Monthly Salary
6.9 months
Daily Rate
₹ 1,667

📋 How This Calculator Works

This calculator helps you determine your legal entitlements when your employment is terminated. It calculates severance pay, notice period compensation, gratuity, and other benefits as per Indian labor laws including the Industrial Disputes Act, 1947 and Payment of Gratuity Act, 1972.

Legal Provisions & Explanation

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Severance Pay Calculation

As per Section 25F of the Industrial Disputes Act, 1947, employees with continuous service of 1 year or more are entitled to severance pay equivalent to 15 days average pay for every completed year of service or part thereof in excess of 6 months.

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Notice Period Compensation

If termination is immediate without serving notice period, employer must pay salary in lieu of notice. Minimum notice period is 30 days for employees with 1+ years of service.

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Gratuity Calculation

Under Payment of Gratuity Act, 1972: Gratuity = (Last drawn salary × 15/26) × Completed years of service. Eligibility: 5+ years of continuous service (except in case of death or disablement).

How Calculations Are Done

Step 1: Severance Pay

15 days salary for each completed year of service. Formula: (Monthly Salary ÷ 30) × 15 × Years of Service

Step 2: Notice Pay

Salary for notice period days not served. Formula: (Monthly Salary ÷ 30) × Notice Period Days

Step 3: Gratuity

For employees with 5+ years service. Formula: (Last Salary × 15 ÷ 26) × Years of Service

Step 4: Leave Encashment

Payment for unused leave days. Formula: (Monthly Salary ÷ 30) × Accrued Leave Days

Important Notes

  • This calculator provides estimates based on standard Indian labor laws
  • Actual amounts may vary based on employment contract and company policies
  • Consult with HR or legal expert for exact settlement amounts
  • Tax implications may apply to certain components
  • Settlement must be paid within 30 days of termination

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Gratuity Calculator

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Leave Encashment Calculator

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Final Settlement Calculator

Calculate complete final settlement