Gratuity is the amount an employer provides to an employee as a token of appreciation for their long-term commitment to the company. It is governed by the Payment of Gratuity Act of 1972, which states that an employee is eligible for gratuity pay when he or she has completed five years of services or more with the current company.
The gratuity online calculator is a tool that helps estimate the amount of gratuity an employee is eligible to receive based on their employment details.
To calculate the gratuity amount, you can use the following formula:
Gratuity = (Last Drawn Salary × Number of Years of Service × 15) / 26
Or
G = b × n × 15/26
Where:
[Gratuity = (50,000 × 10 × 15) / 26 = ₹2,88,461.54]
Follow these steps to simplify your gratuity calculation with the Apkireturn online gratuity calculator:
Using these steps, you can easily determine your gratuity estimate in seconds.
The taxes applicable to the gratuity amount depend on the employee type:
Gratuity received by government employees (central, state, local authorities, defence) upon retirement, termination or death is fully exempt from income tax.
For private sector employees whose employer is covered under the Payment of Gratuity Act, 1972, the tax treatment depends on the amount received. The least of the following three amounts is exempt from income tax:
It’s always advisable to consult a tax advisor in Jaipur for personalized advice on your specific situation, especially if your gratuity amount is significant.
A gratuity calculator helps you estimate the amount you can receive based on your last drawn salary and years of service. It makes it easier to plan your finances and understand your benefits when you leave the company.
Employees are eligible for gratuity payment if they have completed at least five years of continuous service with the same employer.
Gratuity is payable upon retirement, resignation, or termination after completing the required service period, and also upon superannuation or opting for early retirement as defined by company policy.
In case of death or disability, the gratuity is paid to the nominee or legal heir regardless of the length of service.
You can use our gratuity calculator as many times as needed.
Yes, the Apkireturn Gratuity Calculator will provide an accurate estimate of your gratuity amount based on the inputs provided.
The employer must release the gratuity amount within 30 days of it becoming payable.
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