Gratuity Calculator: What will be your gratuity amount on monthly basic salary of Rs 20,000; Get calculations
Gratuity Calculator: Government and private sector companies provide gratuity to reward their employees for their loyalty. Private sector employees are eligible for gratuity on completion of 5 years of service. The gratuity amount depends on the last drawn basic salary of an employee and years of service.
Gratuity Calculator: Do you expect a reward from your employer when you work for them for a long time? Government and private sector employees are bound to give that reward to their employees in the form of gratuity. Private sector employees too can get gratuity on completion of 5 years of service. They can get it at retirement or at the time of leaving the organisation after completing the mandatory period of 5 years.
Photos: Unsplash/Pixabay
Factors that determine gratuity amount
The amount of gratuity depends on two factors- your last drawn basic salary and years of service. The higher the basic salary, the higher the gratuity. The higher the service tenure, the higher the gratuity amount.
Who are eligible for gratuity?
As per the Gratuity Payment Act 1972, gratuity should be paid to workers employed in factories, railway companies, ports, plantations, oil fields, mines, along with shops or establishments with 10 or more employees in the past 12 months.
Who are eligible for gratuity?
It also comprises establishments with 10 or more employees as specified by Centre.
How gratuity is calculated
The formula to calculate gratuity is= (Last drawn salary)X(Number of years in employment)X(15/26)
How gratuity is calculated
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. Sundays are not calculated for gratuity, so instead of 30 days for a month, it is calculated for 26 days.
What will be gratuity amount on Rs 20,000 monthly salary?
Here, we are assuming that the employment duration is 10 years, so the gratuity amount for someone drawing Rs 20,000 as their last drawn basic monthly salary will be = Rs 20,000X10X15/26= Rs 1,15,385.