New Delhi: When an employee works in a company for more than 5 years, he gets gratuity from the company. Gratuity is a kind of reward. In such a situation, many employees have a question that how much amount will they get in gratuity?
In this article, we will tell you about the formula to calculate gratuity. On the basis of this formula, you can also easily know how much amount you will get in gratuity.
How is gratuity calculated
Under the Gratuity Act 1972, a formula has been prepared to calculate gratuity. Under this formula, the basic salary and the duration of the job of the employee are multiplied by (15/26).
For example, if an employee’s basic salary is Rs 75,000 and he has been working in a company for 10 years, then he will get Rs 75000 x (10 years) x (15/26) i.e. Rs 4,32,692 in gratuity.
Sometimes gratuity calculation is different
If a company is not registered under the Gratuity Act, then that company can voluntarily give gratuity to the employee. In such a situation, the calculation of gratuity becomes different. In this situation, the amount of gratuity is considered half of the salary.
Notice period is calculated
Many employees have a question whether the notice period is also calculated in the period of gratuity. The answer is yes. According to the Gratuity Act 1972, notice period is also included in gratuity. This means, if an employee has worked for 4 years and 10 months and has served a notice period of 2 months, he will also get the benefit of gratuity.
