Gratuity Calculator: Rs 41,000 as last-drawn basic salary, 7 years of service; what will be gratuity amount?
Gratuity Calculator: Companies following the Payments of Gratuity Act, 1972, are bound to provide gratuity to their employees with at least 5 years of service. Gratuity depends on the last-drawn basic salary and the number of years of service.
Gratuity Calculator: Employees who work for an organisation for a long time expect some reward in return. The best way to get it can be in monetary form. But why should an employer give it to their employee? Can't the employer deliberately ignore it?
To make it mandatory, the government brought this reward under a law and directed all organisations following it to provide gratuity to their employees.
As per the Payments of Gratuity Act, 1972, organisations following the law should provide gratuity to the employees with at least 5 years of service.
The last drawn basic salary of an employee and the number of years of their service can be the criteria to calculate the gratuity amount.
Gratuity Calculator: How will you know your gratuity eligibility criteria
The Act specifies that the eligible employees are those working in a mine, factory, plantation, port, oilfield, railway company, shop, or establishment where 10 or more persons are employed or were employed on any day of the last 12 months.
Other than that, employees working in establishments or classes of establishments where 10 or more employees are employed, or were employed, on any day of the preceding 12 months, as per the Central Government specification, are also eligible to get gratuity.
Gratuity Calculator: When can one get gratuity?
An employee can get gratuity at their resignation, retirement, termination, or disablement. If the employee dies, their family gets the gratuity amount.
Gratuity Calculator: Is 5 years of service mandatory?
It is compulsory in most of the cases, but it can also be waived off if the employee has died or has become disabled during the service due to some accident or disease.
Gratuity Calculator: Important factor to remember
After completing 5 years of service, if one has worked for at least six months, it will be counted as a full year for gratuity calculation.
E.g., if one has completed 5 years and 6 months of service, it will be counted as 6 years of service.
Gratuity Calculator: Gratuity calculation formula
Gratuity= (Last Drawn Salary x Number of Years of Service) X 15/26
Here 15 refers to 15 days’ wages per year, which is the gratuity payable.
26 refers to 30 days in a month excluding Sundays.
Gratuity Calculator: Gratuity on Rs 41,000 last-drawn basic salary and 7 years of service?
The estimated gratuity amount in such conditions will be Rs 1,65,577.
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