Tata Communications22 min ago
Gratuity Calculation: Here's how much you can get for Rs 50,000- Rs 1,00,000 last-drawn salary after 10.7 years of service?
- Written by Bhawna Gupta
Published: Zee Business| Updated: Zee Business
Gratuity is paid by an employer to their employee as a reward for long-term service to the company. It is a lump sum amount given to the employee upon retirement, resignation, or termination after they complete a minimum of five years of continuous service. In India, it is mandatory to pay under the Payment of Gratuity Act, 1972, for eligible employees.
In this article, we will understand about gratuity eligibility, benefits and also calculate how much you can get for Rs 50,000- Rs 1,00,000 last-drawn basic salary after 10.7 years of service. Take a look:
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Eligibility
1/10-It is mandatory for an employee to complete at least five years of continuous service in a company, as per the Payment of Gratuity Act, 1972. - You leave a service due to retirement, resignation, termination (not for misconduct), death, or disability.
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When does an employee receive gratuity?
2/10Gratuity is payable in the following situations: 1. Retirement: Upon retirement from service 2. Resignation: After completing 5 years of continuous service 3. Death or Disability: In the event of death or disability due to accident or illness while in service 4. Superannuation: Upon reaching superannuation age (a type of retirement benefit)
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Gratuity calculation formula
3/10(Last Drawn Salary x Number of Years of Service) X 15/26
Here, 15 refers to 15 days’ wages per year, and 26 refers to 30 days in a month, excluding Sundays.
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Partial years calculation in gratuity
4/10If your service period is more than six months, it is rounded up to the next full year.
For example, seven years and seven months is considered 8 years for calculation purposes.
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What will be your gratuity on a Rs 50,000 basic salary for 10.7 years of service?
5/10Let’s calculate gratuity for an employee with a basic salary of Rs 50,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (50,000 × 11 × 15) ÷ 26 Gratuity = Rs 3,17,308
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What will be your gratuity on a Rs 60,000 basic salary for 10.7 years of service?
6/10Let’s calculate gratuity for an employee with a basic salary of Rs 60,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (60,000 × 11 × 15) ÷ 26 Gratuity = Rs 3,80,769
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What will be your gratuity on a Rs 70,000 basic salary for 10.7 years of service?
7/10Let’s calculate gratuity for an employee with a basic salary of Rs 70,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (70,000 × 11 × 15) ÷ 26 Gratuity = Rs 4,44,230.8
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What will be your gratuity on a Rs 80,000 basic salary for 10.7 years of service?
8/10Let’s calculate gratuity for an employee with a basic salary of Rs 80,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (80,000 × 11 × 15) ÷ 26 Gratuity = Rs 3,17,308
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What will be your gratuity on a Rs 90,000 basic salary for 10.7 years of service?
9/10Let’s calculate gratuity for an employee with a basic salary of Rs 90,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (90,000 × 11 × 15) ÷ 26 Gratuity = Rs 5,71,154
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What will be your gratuity on a Rs 1,00,000 basic salary for 10.7 years of service?
10/10Let’s calculate gratuity for an employee with a basic salary of Rs 1,00,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (1,00,000 × 11 × 15) ÷ 26 Gratuity = Rs 6,34,615
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