What is Gratuity?
Gratuity is a form of payment that a company pays to their employees as a way of giving them a reward in return for their services. However, for employees to get this gratuity, they must have worked in that particular company for at least five years. This benefit is regulated by the Payment of Gratuity Act 1972.
But there’s another condition, which is, if an employee gets disabled because of an accident, that person can receive the benefits of this act even if they haven’t worked in that company for five years. The amount of this reward will be based on the employee’s last salary and for how long they have worked in that company.
What are the Eligibility Criteria for Payment of Gratuity?
To be eligible for the payment of Gratuity you’ll need to be:
Qualified for the retirement benefits
Have retired from your job
Should have resigned after working for a company for five years.
What is a Gratuity Calculator?
The Gratuity Calculator helps you calculate the amount of Gratuity you’ll get just by adding two simple numbers the number of years you’ve been working for this company and the amount of your salary.
What is the Formula for Calculating the Gratuity?
You can also calculate the amount of Gratuity manually by using this simple formula:
Gratuity = n*b*15 / 26,
The “n” here represents: Number of years
The “b” represents: Basic salary that you drew last time.
Why Should You Use HROne Gratuity Calculator
You should use Gratuity Calculator as it helps you:
Figure out the amount the company owes you.
Saves you time
Saves you the effort of calculating it manually
Helps you plan your finances easily and plan for future