Section 25F, Industrial Disputes Act, 1947 · Industrial Relations Code, 2020

Retrenchment Compensation Calculator

15 days' average pay for every completed year of continuous service, for a workman with at least one year of continuous service.

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Retrenchment Compensation
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Completed Years (rounded, used in formula)0
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Eligibility (≥ 1 year continuous service)
Basis: Under Section 25F of the Industrial Disputes Act, 1947 (retrenchment provisions now carried into the Industrial Relations Code, 2020), a workman with not less than one year of continuous service is entitled to 15 days' average pay for every completed year of continuous service (or any part thereof in excess of six months) as retrenchment compensation, in addition to notice pay/notice period and any other dues. Compensation = (Basic + DA ÷ Days for Calculation) × 15 × Completed Years.