The calculation of how much gratuity money will be received is done on the basis of a certain formula. If a person earns Rs 60,000 per month and has worked in a company for 10 years continuously, then how much money will he get? Understand the calculation.
Gratuity is the amount given to an employee by the company as a reward for giving better services for a long time. According to the rule, if a person works in a company continuously for 5 years, then he becomes entitled to get gratuity. The calculation of how much gratuity money will be received is done on the basis of a certain formula. If a person earns Rs 60,000 per month and has worked in a company for 10 years continuously, then how much money will he get? Let’s understand the calculation based on the formula.
This is the formula to calculate gratuity
The formula to calculate gratuity is- (Last salary) x (How many years did you work in the company) x (15/26). Final 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 and gratuity is calculated on the basis of 15 days.
If the salary is 60,000 and you have worked for 10 years, how much will be the gratuity?
If the salary is 60,000 and the job is for 10 years, then how much gratuity will be due? According to the formula, its calculation will be like this – (60,000) x (10) x (15/26) = Rs 3,46,153. According to the formula, this amount will be given to you as gratuity by the company. On the other hand, if a person’s salary is Rs 60,000 but he has worked for only 5 years, then how much gratuity will he get? In such a situation, according to the formula, the calculation will be on this basis – (60,000) x (5) x (15/26) = Rs 1,73,076 will be given as gratuity. According to the rule, gratuity of more than Rs 20 lakh cannot be given.
Also know this rule related to gratuity
According to the Gratuity Act 1972, if an employee dies in an accident or becomes disabled and is unable to work again, then the rule of working for 5 years for payment of gratuity does not apply to him. In such a case, the gratuity amount is paid to the nominee or dependent. You can register the name of the nominee for your gratuity amount by filling Form F while joining the job. On the other hand, if an employee has worked for 4 years and 8 months in a company, then his job period is considered as full 5 years. In such a case, he is given the amount of gratuity as per 5 years.
