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.

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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.

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A gratuity calculator is a valuable tool that helps you know how much compensation you will receive after a certain number of years of service with a certain monthly basic salary plus dearness allowance. There are plenty of gratuity calculators online, and you can check ours out below.

These are the benefits of the gratuity calculator -

• The compensation calculator shows how to calculate gratuity in India.
• It helps save time.
• You can perform financial planning for your future.

Here are some things to keep in mind while 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.

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