There’s no working individual who has not heard about gratuity. It is one of the most popular employee benefits in India. Gratuity is important for every working professional. The benefits of gratuity are many.
However, a lot of people out there still do not have a clear picture of this benefit. If you are also one of them, you are at the right place.
Here, we will tell you everything you must know about gratuity.
What does it mean?
Every employee works really hard for the success of his/her company. When employers give a sum of money to such employees as a token of appreciation, it is called gratuity.
Who gets it?
Not every employee gets gratuity. Following are some terms and conditions for acquiring this employee benefit:
- She or he must have worked for five or more years in the same firm
- She or he should not be terminated
- She or he can also request the payment if met with an accident or severe health problem
How is it calculated?
Here is the gratuity formula to compute your payment:
Gr= Avg Salary (Ba+DA)*½* No. of EY
- Here, GR stands for gratuity
- BA stands for basic salary
- DA stands for dearness allowances
- EY stands for employment years
To make your computation process easier, you can even rely on a gratuity calculator.
What is a Gratuity Calculator?
A gratuity calculator is a tool that will help you calculate your gratuity payment without any hassle. You just have to give the necessary details, and the calculator will do the rest of the job on its own.
There you go!
So, this is everything you need to know about gratuity. Of course, there is more, but we have only talked about the top must-knows here.
We hope you have got no doubts now!
