What is a gratuity?
Gratuity is the amount that an employee receives in return for the services offered by him/her to the company. A gratuity sum is given for the appreciation to the employees. An employee must be employed in the company for more than 5 years to be eligible for a gratuity amount. Gratuity payments are made under the act of gratuity 1972. The maximum amount for a gratuity is Rs.20 lakh but if the amount of gratuity exceeds then it's under the ex-gratia.
What is a gratuity calculator?
A gratuity calculator is an online utility tool that helps you to calculate the gratuity amount for the services offered by the employees to the organizations. A gratuity calculator is a helpful tool for those employees who are planning to retire from the job. He/She can plan their financial expenses by the estimation of the gratuity amount for working in the organization for five or more years. The gratuity calculator needs to put certain details to show you the estimated amount of gratuity that you will be credited by the organization. The details include the number of years of service and last drawn monthly income along with the dearness allowance.
How to use myitronline gratuity calculator?
Myitronline calculator can help an individual to estimate the gratuity amount that he or she will be credited by the organization.
The myitronline calculator uses the following formula to determine the gratuity amount.
Gratuity (G) = n*b*15/26
Individuals or employees need to input the required information like Monthly income along with the dearness allowance and the number of years of services. Now let our gratuity calculator calculate the amount of gratuity in seconds and will show you the accurate results.
What is the eligibility for gratuity in India?
To be eligible for the gratuity in India, One should meet the following criteria.
- An individual must be in a working position for five years or more than it in an organization.
- An individual must be eligible for superannuation.
- An employee must be retired from the job.
- In case of the death of the employee, the gratuity amount is credited to the nominee.
- If the employee suffers from any sickness or accident.
How to calculate gratuity?
One can determine the gratuity amount by using the following gratuity calculator formula.
Gratuity (G) = n*b*15/26
n= The number of employment years in the organization. b= Monthly income along with the dearness allowance + Incentives or commission sales if there is. For instance- If an individual has worked with the ABC company for a period of 10 years. His/Her last drawn elemental salary along with dearness allowance was Rs 50,000.
The amount of gratuity = 10 * 50,000 * 15 / 26 = Rs 2,28,462
Two points must be noted here:
As per the Gratuity Act, the amount of gratuity should not exceed more than Rs 20 lakh. Any excesses would fall under ex-gratia.
If the tenure you have worked in the last year of employment is more than six months, then it will be rounded to the nearest figure. Suppose the tenure of service is 13 years 7 months, then you receive the gratuity for 14 years. Otherwise, it's for 13 years if it happens to be 13 years or 5 months.
Benefits of using myitronline calculator
The Myitronline Gratuity calculator is an easy and simple online tool. The gratuity calculator shows you the estimated amount of gratuity that you will receive after 5 years or more. Myitronline gratuity calculator presents an estimated gratitude amount in seconds. You can plan your financial expenses with the help of this tool. It has a simple and understandable interface. Myitronline gratuity calculator can be accessed from anywhere without moving out of the comfort zone.