Gratuity Calculation: Gratuity is the amount that is given to the employee as a reward for giving better services in the company for a long time. If you worked continuously for 10 years in a company and your last salary was Rs 70,000, then how much amount will you get as gratuity? Know here
Gratuity Calculation Formula: An employee working continuously for 5 years in a company becomes entitled to get gratuity on leaving the job. The amount of gratuity is decided through a formula. In this, everything from years of job, income is added. Gratuity is the amount that is given to the employee as a reward for giving better services in the company for a long time. Suppose you have also worked in your company for 10 years and your last salary was Rs 70,000, then how much amount will the company give you as gratuity? Know about this here.
This is the Gratuity Calculation Formula
The formula to calculate gratuity is- (Last salary) x (How many years did you work in the company) x (15/26). Last salary means the average of your last 10 months’ salary. This salary includes basic salary, dearness allowance and commission. 26 days are counted as Sundays are 4 days off in a month and gratuity is calculated on the basis of 15 days.
₹70,000 salary, how much money will be received for 10 years of service
According to the calculation of gratuity formula, if you worked in a company for 10 years and your last salary was Rs 70,000, then the calculation formula will be (70000) x (10) x (15/26). After calculation, the total will be Rs 4,03,846, this amount will be given to you as gratuity. In this way, you can calculate with this formula on the basis of your last salary and years of employment.
Calculation is different in this situation
When the company or institution is not registered under the Gratuity Act, then the employees do not come under the Gratuity Act. But in such a situation, if the company wants, it can voluntarily give gratuity to the employee, but in such a case the formula for deciding gratuity becomes different. In such a situation, the amount of gratuity will be equal to half a month’s salary for every year. But the number of days worked for a month will be considered as 30 days, not 26.
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