Gratuity Calculator

Total Gratuity Payable

₹2,01,923

Monthly Salary (Basic Salary + DA)

₹10,000
₹10,00,000

Number of years of service

Yrs
5 yrs
35 yrs

Gratuity Calculator - An Overview

A gratuity is a financial reward given by an employer to a worker in exchange for services performed to the company. If an employee leaves an organization after five years of nonstop employment, they are compensated whether they retire, quit, are laid off, or are terminated. Continuous 5-year service requirements may be eased in specific circumstances, such as the death of the individual.

If you want to retire or anticipate leaving a job after at least five years of service, you may use the gratuity calculator to calculate how much money you will get as a gift. You should be aware of the different guidelines for calculating gratuities beforehand. We'll examine a number of rules that will enable you to predict the size of your gratuity so that you can better plan your investments after getting the money.



The formula for gratuity calculation is defined below:

G = n*b*15/26

In which:

N/n refers to the number of years a person worked in an organization

B/b means the last drawn basic salary along with Dearness Allowance (DA)

G refers to gratuity amount one is entitled for

dot_bg

Gratuity Calculator (FAQs)

The primary purpose of using a gratuity calculator is to determine the amount an employee may get after retiring or leaving an organization after 5 years.

A gratuity calculator can help an employee in several ways like:

It informs you of the precise amount of gratuities that you are entitled to from your employer.

You just need to input your salary and number of years working for the firm. The gratuity calculator will display the total gratuity amount based only on these two inputs.

You may avoid employing the challenging gratuity calculation method 2022 by utilising the gratuity calculator. It applies the formula and displays the tip amount right away.

Use the gratuity calculator to properly arrange your finances if you intend to continue serving customers for an extended period of time.

Employers might choose to stop paying gratuities under the Payment of Gratuity Act of 1972. The individual has worked for the company for at least five years. There are numerous rules regarding gratuities. Let's look at each of the gratuity rules separately.

The most recent release of the Government of India's interim budget for the year 2019 increased the threshold for the highest gratuity amount from the prior cap of 10 lakhs to 20 lakhs. This rule, which became effective on March 29, 2018, will assist PSU workers and others who are not covered by the Payment of Gratuity Act.

The legislation still states that gratuities can never exceed Rs. 10 lakhs for non-government workers; only for government personnel is the maximum limit for gratuities enhanced. Ex-gratia refers to any excess gratuity.

The number is rounded up to the next number if there are more than six months left in a person's employment year in the last month. For instance, if someone served for 15 years and 7 months, they would be given the 16-year gratuity. The employee will earn a 15-year gratuity, however, if it really ends up being 15 years and 4 months.

This is because the new rule places a cap on an employee's allowances at 50% of basic salary. Employers must comply with this law by increasing employees' base pay by 50%.

In accordance with the Payment of Gratuity Act of 1972, an employer is permitted to withhold all or a portion of an employee's gratuity payment, even if the employee has served for five or more years. This only works if the worker was terminated due to disruptive conduct, which includes attempting to harm coworkers physically.

Reach out to our Experts if you have any Doubts

Like the best things in life, Consultations @InvestKraft are free

Drop a Mail or give us a Missed Call & Begin your Investment Journey here