Gratuity usually refers to the amount that is payable to an employee of a company or an organisation. It is paid to an employee in return for services offered by him to the company. Only those employees who have been employed for five or more than five years by the company are eligible to get gratuity. Gratuity is governed by the Payment of Gratuity Act, 1972.
However, there are some exceptions out there to five years rule. Employees can get gratuity by their company before five years if she/he gets disabled in an accident or due to some disease. Gratuity mainly depends on the last drawn salary by an employee and the number of years of service an employee has worked for the particular company.
If an employee of a company or an organisation wants to receive gratuity, he or she must meet the following criteria. These pre-requisites and points are summarised below:-
A gratuity calculator is a type of online calculator tool that calculates the gratuity amount based on the formula for calculating the gratuity. It also gives an estimated amount that one would receive if she or she will quit that particular job, after rendering five years of service. It’s a convenient easy-to-use tool that calculates the gratuity on retirement from the company.
There’s a formula for calculating the amount of payment of gratuity. It is given below:-
For calculating the gratuity amount, one must enter the inputs of the last drawn salary and the tenure of continuous service with the company. The last drawn salary of an employee includes one’s basic salary, the dearness allowance and the commission that you have received from sales.
The gratuity calculator online is a very simple, free, and easy tool. It shows the amount of payable gratuity in a fraction of seconds. It is effortless to use and there’s no limit to it. One can use this gratuity calculator for n number of times.
The amount of tax, one needs to pay on the amount of gratuity depends on the type of employee who has to receive the gratuity.
The gratuity online calculator is an easy-to-use generic tool that holds the ability to calculate the gratuity amount with certainty. There are the following advantages of using a gratuity online calculator. These are given below:-
Superannuation is a type of organisational pension program created by a company for the benefit of its employees.
The Payment of Gratuity Act, 1972 is a legal statute that makes certain industries or organisations mandatory to pay a one-time gratuity to their retired employees.