Gratuity Calculation Formula: Most of the citizen are depend on job either the government or private sector where they are getting monthly salary after providing their services to the department or company. The companies are providing multiple facilities to their employees to enhance the living style of their employees and motivate them.
The Gratuity amount is also one of the facilities provided by companies and departments to their employees. It is provided to the Employees after getting retirement or leaving the job. So if you are also an employee with the government or private sector company then you will also claim for Gratuity amount after completing the specific days in your company. You can check the calculation of Gratuity amount in the Gratuity calculation formula 2024 in this article which will help you to contact your employer or human resource development department to get the complete amount.
What is Gratuity amount?
The gratuity amount is a payment made by an employer to an employee as a token of appreciation for their service to the company. It’s a lump sum payment that is typically paid out when an employee retires, resigns, dies, or becomes permanently disabled. The gratuity amount can be a significant financial windfall, and it can help employees with their financial security during their transition to a new job or retirement.
CRA Benefit Increase August 2024: Check Increased Amount CPP, OAS, GST/HST & ACWB
Social Security US Compassionate Allowances Program Benefits, Eligibility & Application Process
Eligibility for Gratuity
There are multiple factors which decides the eligibility for the Gratuity of the employee which is provided not only at the time of completing the minimum service years in the company but is also provided earlier in multiple cases such as death or disablement of the employee due to accident or disease.
- The employee has to complete at least five years in the company in a continuity to be eligible to receive the Gratuity after leaving the company or getting retired.
- If an employee dies while in service, their family or nominee can claim gratuity irrespective of the service period.
- If an employee becomes permanently disabled due to an accident or illness, they can claim gratuity regardless of the service period.
- It is important for employees to apply for Gratuity amount in the company which is lying under the Payment of Gratuity Act, 1972, So if you are working in any unrecognize sector for a company which is not linked with this act then you cannot apply for the Gratuity amount. however company can provide the facility according to their budget.
OTET Result 2024 Direct Link से चेक करें Answer Key, Cut Off Marks @bseodisha.ac.in
OLA App Loan Apply 2024: मोबाइल से 10 लाख का लोन 5 मिनट मे! एक क्लिक में मिलेगा लोन
Calculation of Gratuity in 2024
Companies are following simple calculation to calculate the Gratuity amount to their employees and you can also check it by following this formula:
Gratuity = (Last drawn salary × 15 days × Number of completed years of service) / 26
Company are calculating the Gratuity by following the last salary of the employee which is calculated from basic salary and after that multiply is it with 15 days and multiply it with the number of services more than 5 years. After that they divides all this calculation from 26 so after days the product of this calculation is the actual gratuity amount for the employee.
For Example: Mr. Kumar has worked for a company for 20 years and his last drawn salary was ₹50,000 per month. Determine the Last Drawn Salary: ₹50,000 per month
Calculate Completed Years of Service: Mr. Kumar has completed 20 years of service.
Plug the values into the formula: Gratuity = (₹50,000 × 15 days × 20 years) / 26
Perform the calculation:
= (₹50,000 × 15 × 20) / 26
= (₹750,000 × 20) / 26
= ₹576,923.08
So the employee will receive total 576923.08 rupees as the Gratuity after completing 20 years of the service. The divisor “26” represents the number of working days in a month. This formula provides an approximation of the gratuity amount.
Claim the Gratuity
Most of the companies are automatically providing the Gratuity amount to their employees after leaving the company or completing the minimum years of the employment without applying for claiming the Gratuity.
But in case if you are not getting support from your company then you can registered your complain at your district labour Department and after that authority will automatically contact to the company and will help you to receive the complete Gratuity amount according to the calculation.