Gratuity Calculator

If you want to know how much you will receive as compensation, then a gratuity calculator is a must for you. It will help you estimate the amount of money you will receive after working for 5 or more years at an organisation or if you were injured in an accident.

This article will look at the gratuity calculation formula and the process for its analysis.

Let’s get started!

Gratuity is a sum of money that you receive from the organisation you work for as a token of appreciation. Payment of gratuity is regulated under the Payment of Gratuity Act 1972.

Gratuity is typically paid after a period of 5 or more years.

Moreover, gratuity works like this: It can be paid directly from the employer’s account, or the employer can pay from the general gratuity insurance plan with any service provider.

The gratuity calculator uses a basic formula, which is –

Gratuity = N*B* 15/26

Here,

• N - Number of years an employee has worked in a single organisation
• B - Last basic salary, including the DA

Here are some key points to consider when using a gratuity calculator.

• The upper limit of the gratuity is twenty lakhs in its entirety. Anything you receive above this is called ex gratia or a bonus.
• Also, if you have worked for 15 years and 7 months, it will be rounded off to the next highest year.
• Central government gratuity calculator, gratuity calculator for private employees, pension gratuity calculator, and salary gratuity calculator are all the same.

 

In conclusion, use our gratuity calculator to figure out how much you will receive after your years of service!