Total Gratuity payable₹2,88,461.53
What is Gratuity?
Gratuity refers to the amount that an employer pays his employee, in return for services offered by him to the company. However, only those employees who have been employed by the company for five years or more are given the gratuity amount. It is governed by the Payment of Gratuity Act, 1972.
The employee can get the gratuity before five years if he/she gets disabled in an accident or due to a disease. Gratuity mainly depends on your last drawn salary and the years of service which are rendered to the Company.
What are the Eligibility Criteria for Payment of Gratuity?
To receive the gratuity, you must meet the following eligibility criteria:
- You should be eligible for superannuation.
- You should have retired from service.
- You should have resigned after continuous employment of five years with the company.
- In case of your death the gratuity is paid to the nominee, or to you on disablement on account of a sickness or an accident.
How to Calculate Gartuity?
Gratuity calculation involves usage of the gratuity formula, which goes as follows:
G = Total amount of gratuity you can receive
N = Number of years of your service/job in the company
B = Last received salary (Basic plus DA)
We can also take an example for the calculation of gratuity and understand the formula better.
Suppose you have worked in a private company that offers EPF service to its employees. With this, you are eligible to receive gratuity from the company. Now, let us take your last drawn salary (Basic salary plus Dearness Allowance) to be Rs 60,000, you can receive a gratuity of:
You can also calculate gratuity using the gratuity calculator formula 2022. It does not require you to deal with the complicated formula. You can use the calculator online and know the gratuity amount easily.