Gratuity Calculator

Gratuity Amount
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Gratuity Calculator – Calculate Your Gratuity Amount Easily 💼💰

Estimate your gratuity benefits quickly and accurately with Money Compute’s Gratuity Calculator! 📊✨

Gratuity is a statutory benefit paid by employers to employees as a token of appreciation for their service. Our calculator helps you determine your gratuity amount as per the Payment of Gratuity Act, enabling you to plan your retirement finances better. 🎯

What Is Gratuity? 🤔

Gratuity is a lump sum payment made by an employer to an employee who has rendered continuous service for at least 5 years. It is meant to provide financial security post-retirement or upon resignation/termination. The amount depends on your last drawn salary and years of service. 🧾

How the Gratuity Calculator Works 🧮

The gratuity amount is calculated using the formula:

Gratuity = Last drawn salary × 15 / 26 × Number of years of service

Where:

  • Last drawn salary = Basic salary + Dearness Allowance (monthly) 💵

  • 15 = Number of days’ wages per year of service, as per law

  • 26 = Number of working days in a month (considered as per Payment of Gratuity Act) 📅

  • Number of years of service = Years completed with the employer ⏳

Note: Partial years are considered as full years if more than 6 months.

How to Use Money Compute Gratuity Calculator 🚀

  1. Enter your last drawn basic salary and dearness allowance (monthly) 💼

  2. Input your total years of service completed with the employer 🗓️

  3. View instant results:

    • Estimated gratuity amount 💰

    • Breakdown of calculation for clarity 🧮

Benefits of Using a Gratuity Calculator 🏆

  • Ensures accurate calculation as per statutory norms 🏛️

  • Helps employees understand their retirement benefits clearly 🔍

  • Assists HR professionals in quick gratuity processing 💼

  • Simplifies financial planning for retirement and resignations 🧠

Example Calculation 📋

If your last drawn salary (basic + DA) is ₹50,000 per month and you have completed 10 years of service:

Gratuity = 50,000 × 15/26 × 10 = ₹2,88,461.54

This amount is the gratuity you are eligible to receive.

Common FAQs About Gratuity ❓

  • Q1: Is gratuity payable for service less than 5 years?

    • Normally, no. But in cases of death or disablement, gratuity is payable regardless of service length.

  • Q2: What if my employer doesn’t pay gratuity?

    • You can file a claim under the Payment of Gratuity Act for legal enforcement.

  • Q3: Is gratuity taxable?

    • Gratuity received under the Payment of Gratuity Act is tax-exempt up to specified limits.

  • Q4: Can gratuity be claimed if I resign?

    • Yes, if you have completed 5 or more years of continuous service.

Plan Your Retirement Benefits with Money Compute Gratuity Calculator! 🚦

Calculate your rightful gratuity effortlessly and prepare for a secure financial future. Try the Gratuity Calculator now! 🎉💼

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