How much gratuity you will get is decided on the basis of a formula. If you are also one of those people who have been serving the company for a long time and have become entitled to gratuity, then know the Gratuity Calculation Formula here and calculate how much gratuity you will get.
Gratuity Calculation Formula: If you work in a company for 5 years continuously, then you become entitled to get gratuity from the company. This is the amount that is given to the employee as a reward for giving better services to the company for a long time. Any company in which 10 or more employees work comes under the purview of Gratuity Act 1972.
How much gratuity you will get is decided on the basis of a formula. If you are also one of those people who have been serving in the company for a long time and have become entitled to gratuity, then know here what is the formula for Gratuity Calculation and if your salary is Rs 75,000 and you have been working for 10 years, then how much amount should you get as gratuity.
This is the Gratuity Calculation Formula
The formula to calculate gratuity is- (Last salary) x (How many years did you work in the company) x (15/26). Last salary means the average of your last 10 months’ salary. This salary includes basic salary, dearness allowance and commission. Due to 4 days of Sunday being week off in a month, 26 days are counted and gratuity is calculated on the basis of 15 days.
75000 salary, how much money will you get after 10 years of service
According to the calculation of the gratuity formula, if you worked in a company for 10 years and your last salary was Rs 75,000, then the calculation formula will be (75000) x (10) x (15/26). After calculation, the total will be Rs 4,32,692, this amount will be given to you as gratuity. In this way, you can calculate with this formula on the basis of your last salary and years of employment.
The calculation is different in this situation
When the company or institution is not registered under the Gratuity Act, then the employees do not come under the Gratuity Act. But in such a situation, if the company wants, it can voluntarily give gratuity to the employee, but in such a situation the formula for deciding gratuity becomes different. In such a situation, the amount of gratuity will be equal to half a month’s salary for every year. But the number of working days for the whole month will be considered as 30 days, not 26.
