Gratuity Calculator: 8 years of service and Rs 50,000 last drawn basic salary; how much gratuity will you get; know here
Gratuity Calculator: Gratuity is the right of an employee who spends at least 5 years in a private or government sector job. Two factors that are considered to decide the amount of an employee's gratuity are the last drawn basic salary and the years of service.
Gratuity Calculator: Know Your Gratuity Amount: When an employee does a job in a private or public sector company for a long time, they want some recognition for their contribution not only in the form of appreciation but also in monetary terms. It may encourage them to extend their stay with the company or feel motivated at their workplace. Gratuity is the monetary form of appreciation by their company. Public and private sector companies need to provide gratuity to their employees on completion of 5 years of service. Employees get this amount at the time of leaving the company or at termination of their services.
Photos: Unsplash/Pixabay
How is the gratuity amount decided?
The two factors that decide the gratuity amount are the last drawn basic pay and the number of years of service. If two persons are drawing the same basic salary at the time of leaving an organisation, the one with longer tenure will get a higher gratuity.
How is the gratuity amount decided?
Similarly, if both have the same duration of their service with the company, the one drawing a higher basic salary will get a higher maturity amount.
Are you eligible for gratuity?
Let's go through the rules to know that who is eligible to get gratuity from their employers. As per the Gratuity Payment Act 1972, gratuity should be paid to workers employed in factories, railway companies, ports, oil fields, mines, and plantations, as well as shops or establishments with 10 or more employees in the past 12 months.
Are you eligible for gratuity?
As per the rule, establishments with 10 or more employees as specified by Centre are also bound to give gratuity to their employees.
How to calculate gratuity
The formula to calculate gratuity is= (Last drawn salary)X(Number of years in employment)X(15/26)
How to calculate gratuity
The Gratuity Act provides for payment of gratuity at the rate of 15 days wage for each completed year of service, subject to a maximum of Rs 10 lakh. On the other hand, 26 is the number of working days in a month.
What will be the gratuity amount on Rs 50,000 monthly salary?
Here, we are calculating gratuity for an employee who has completed 8 years of service and was getting Rs 50,000 as the basic salary.
What will be the gratuity amount on Rs 50,000 monthly salary?
The gratuity amount for them will be = Rs 50,000X8X15/26= Rs 230769.23.