23+ How To Calculate The Gratuity In India Viral. For employees of private sector companies, there will be no tax on the gratuity, subject to a maximum of rs.10 lakh. To calculate the gratuity amount, you would need to input the basic last drawn salary and the tenure of the current service with the organisation.
Determining the accurate gratuity value. The ratio 15/26 represents 15 days out of 26 working days in a month. Gratuity is the amount of payment made by an employer to an employee in appreciation of the past services rendered by the employee which is received at the time of retirement or in the event of death.
You Can Calculate The Gratuity With The Help Of The Following Formula:
For an example, if an employee basic salary is 6000 rs and he completes a continuous service of 6 years in an establishment then the amount of gratuity he will get will be calculated on below gratuity calculation formula. Enter you salary (basis + da) and specify the years of service in the company. Gratuity = last drawn salary × 15/26 × no.
(Basic Salary +Da) X 15 X No.
15 days wages = last drawn wages × 15/26. (average salary of last 10 months/30) * 15 * completed years. Gratuity = average salary (basic + da) * ½ * number of service years.
The Calculator Will Show The Final Gratuity Amount Instantly.
For example, if the employee has a. Imagine that you worked with company a for 15 years. In such circumstances, a month will have a total of 30 days.
Ab15/26 Where, A Is (Number Of Years Of Service In A Company) B Is (Last Drawn Salary) {Basic Salary + Dearness Allowance} 15 Being Wages For 15 Days And 26 Being The Days Of The Month.
Consider the following details of a person: Open indmoney gratuity calculator online from your smartphone or computer. 80,000 as your last basic salary with 10 years four months of employment tenor, then the gratuity amount you will receive as per the formula is:
Here, Last Drawn Salary Means The Sum Of Basic Monthly Salary, Dearness Allowance And Any Commission Received On Sales, While 15/26 Represents 15 Days Out Of 26 Working Days.
If you had been drawing rs. If the number of employees of the same organisation reduces to under 10, it will still have to pay the gratuity, as per regulations of the act. Below are the 2 ways that explain “how to calculate gratuity in india?”:
