Understanding Gratuity

Gratuity is a monetary benefit given by an employer to an employee as a token of appreciation for their services to the company. It is a form of financial reward for long-term employees and is governed by the Payment of Gratuity Act, 1972, in India. Gratuity is typically paid when an employee leaves the company after completing at least five years of continuous service.

Who is Eligible for Gratuity?

In India, the Payment of Gratuity Act, 1972, governs the eligibility and calculation of gratuity for employees. Here's a general overview:

• Employees who have completed five or more years of continuous service are eligible.
• Certain exceptions may apply depending on the reason for leaving the company (e.g., retirement, death, disability).

How to Use Our Gratuity Calculator:

• Basic Salary/Last Drawn Salary: Enter the employee's basic salary or the last drawn salary, whichever is higher.
• Years of Service: Input the total number of completed years of service.

The Gratuity calculator will then provide you with the total value of your Gratuity upon maturity.

Benefits of Using Our Gratuity Calculator:

• Simple and User-Friendly: Enter your basic salary, last drawn salary, and years of service to receive an instant gratuity estimate.
• Accurate Calculations: Our calculator adheres to the Payment of Gratuity Act, 1972, ensuring reliable results.
• Saves Time: Avoid manual calculations and get your gratuity amount quickly.

A Gratuity Calculator is a valuable tool for employees to understand their gratuity entitlements accurately. It simplifies the complex calculations and provides quick results, helping you plan your finances better. Use our Gratuity Calculator today to estimate your gratuity amount and make informed financial decisions.