Retrenchment compensation calculator: find your total payout on retrenchment under the Industrial Relations Code, 2020.
FAQs about Retrenchment Compensation Calculator
Often not, up to ₹5 lakh. The old rule keeps the lowest of three amounts tax-free: what you received, ₹5 lakh, or 15 days’ pay for each year of service. Anything above that is taxed. The tax law changed on 1 April 2026, so check with a CA before you file.
Retrenchment means your job ends for good. In a lay-off, you keep your job but your employer has no work for you for now, for example because of a power cut or a machine breakdown. Retrenchment pays 15 days’ pay for every year of service. A lay-off pays 50% of your basic pay plus dearness allowance.
No. It is paid only when your employer ends your job for business reasons. It is not paid if you resign, retire, your contract ends, you are dismissed for misconduct, or you leave because of long illness. Gratuity and your pending salary can still be due.
First, write to your employer with your calculation. If they still don’t pay, complain to the labour office and ask the Government to recover the money. Do this within one year of the date the money was due.
It depends on the work you actually do, not your job title. People doing technical, clerical or operational work can be covered. Managers and administrators are not, and supervisors earning more than ₹18,000 a month are not either. If you are unsure, ask a labour lawyer.
