Gratuity Calculator: Know this employee friendly rule that can put more money in your hands
Gratuity Calculator Formula: Gratuity refers to an amount or money, which a recruiter pays to his employee in return for services offered by him to the organisation along with salary.
Gratuity Calculator Formula: Gratuity refers to an amount or money, which a recruiter pays to his employee in return for services offered by him to the organisation along with salary. However, only those employees who have been employed for five years or more are given gratuity benefits. In India, gratuity is governed by the Payment of Gratuity Act 1972. Know here that a Gratuity calculator works differently. Now, read this carefully - as per the Payment of Gratuity Act 1972, an employee will get gratuity of one year for every six month service in a particular financial year! Means, if an employee has worked for 5 years and six months, he or she is eligible for the Gratuity payment of six years. Yes, that is true!
On how does the gratuity calculator 2020 works, Jitendra Solanki, a SEBI registered tax and investment expert said, "Gratuity Calculator is governed under the Payment of Gratuity Act, 1972 that is also known as the Gratuity act 1972. Section 4(2) of the Payment of Gratuity Act says that for every completed year of service in excess of six months, the employer shall pay gratuity to an employee for the entire year. That means if an employee works in the establishment for more than 6 months in a year, he shall be eligible to get gratuity at the prescribed rate." So, if an employee has given regular service to an establishment for five years and six months, he or she will get Gratuity for the whole six years.
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Solanki said that Gratuity is an important part of an employee's income as it is mandatory investment of an employees which is governed by the government institution to respect and ensure loyalty payment of the employee. Asked about the eligibility criteria for the gratuity payments Solanki listed out the following:
1] The employee should be eligible for superannuation;
2] The employee should have retired from the job;
3] The employee should have resigned after remaining employed for 5 years with the company; and
4] In the case of death of the employee, or if the employee become disabled on account of sickness or accident.
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