Gratuity Calculator: If you work in a company for a long time, then at the time of retirement or leaving the job, you get some important benefits, such as a pension, PF, and salary-related facilities. One of the biggest benefits among these is gratuity. This is a kind of reward that the company gives to its employees in return for their long service. However, not every employee is entitled to gratuity. Some conditions have been fixed for this.
When is gratuity received?
To get gratuity, it is necessary for the employee to work continuously in the company for at least 5 years. After completing 5 years of service, if the employee leaves the job, retires, or his job ends due to any reason, then the company has to pay gratuity.
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What is the Gratuity Act 1972?
Let us tell you that according to the Payment of Gratuity Act, 1972, it is mandatory to pay gratuity in companies where at least 10 or more employees work. However, if a company has fewer than 10 employees, then it can pay gratuity as per its policy. On the other hand, if a company does not fall under this category, then the employees are entitled to gratuity. But it depends on the policies of the companies.
Understand the calculation of 10 years here
For information, let us tell you that the government has prepared an easy formula to calculate the amount of gratuity. In this, if an employee works in a company for 10 years and his last salary is around 60 thousand, then on the basis of calculation, the gratuity will be Rs 3 lakh 46 thousand 154. In this, a gratuity of 26 days is added every month. Because there is a holiday for 4 days. This is the reason that the annual calculation is done on the basis of 15 days.
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What is the payment of employees?
If you are working, then it is very important to understand the correct calculation of gratuity. According to the rule, if an employee works for more than 6 months in a company, then that time is considered as a full year. For example, if an employee has worked for 7 years and 8 months, then it will be counted as 8 years only. On the other hand, if an employee has worked for 7 years and 3 months, then his service period will be counted as 7 years. On this basis, the gratuity of the employees is decided, and they are paid.