Know about gratuity calculation, rules and many more – Do you know how gratuity is calculated, amount is received after so many days
Anyone who works in any company for a long time becomes an officer of gratuity. This gratuity is given by the company. There is also a rule in this that you have to work for a minimum fixed time. At the same time, other types of rules have to be followed, after which you become eligible to get gratuity. By the way, at present, many people do not have much information about it. Nor is much known about its rules.
In fact, if they work for a certain time in the company, then the employees get the provident fund, in the same way gratuity is also given. Gratuity is a reward given to an employee by the company. If the employee fulfills certain conditions of the job, then he will get the amount of gratuity according to a fixed formula. Let us also tell you what is Gratuity Act and how it is calculated.
When do you get Gratuity? Gratuity is that small part of your salary which is deducted by the company. According to the rules, if a person works in a company for at least 5 years, then he gets gratuity. If you leave the company after 5 years, you get gratuity. According to the Payment of Gratuity Act, 1972, this benefit is available to every employee of a company in which at least ten employees are working every day. If the employee changes the job or retires or leaves the job due to any reason after fulfilling the rules of gratuity, then they get the benefit of gratuity.
How is Gratuity Calculated: There is also a fixed formula to calculate gratuity. For this, you have to multiply your last salary by 15 and divide by 26 and multiply the number of years you have worked in the company. That is, if you have worked in a company for 20 years and your last salary is Rs 75000, then you will get about 8.65 lakh rupees as gratuity. That’s 4 days off. At the same time, gratuity is calculated on the basis of 15 days in a year.
Also important to know: According to the gratuity formula, if an employee has worked in a company for more than 6 months, then it will be calculated as one year. If an employee has worked in a company for 7 years 8 months, then his tenure will be counted for 8 years. If 7 years works for 3 months then it will be considered as 7 years only.
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