Gratuity & Severance Calculator

No. The Fair Labor Standards Act (FLSA) does not require severance pay. It is a matter of agreement between an employer and an employee (or a union contract).

In India, a working month is considered to have 26 days (excluding Sundays). Therefore, "15 days salary" is calculated as (Monthly Salary ÷ 26) × 15. This results in a higher payout than a simple half-month calc.

For the first 5 years of service, you receive 21 days of Basic Pay per year. For every year exceeding 5 years, you receive 30 days of Basic Pay. The total cannot exceed 2 years' salary.

In the USA, voluntary resignation usually forfeits severance. In India and UAE, you are still entitled to Gratuity/EOSB if you resign, provided you have met the minimum service years (5 years in India, 1 in UAE).

Generally, no. Gratuity and Severance are typically calculated on the Basic Salary (plus Dearness Allowance in India). Commissions and annual bonuses are excluded.