If you are thinking about how to check gratuity amount? Then let me assist you with this by introducing you to the formula for calculating gratuity amount. I myself used this formula to calculate my father’s gratuity income.
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The formula for calculating gratuity for employees whose employer is covered by the Gratuity Act is Gratuity = n*b*15 / 26.
Where n is the service period completed in the company
b = The basic salary that is last drawn + the dearness allowance
For example, you have 15 years of experience with the XYZ corporation. Your last drawn basic pay, along with dearness allowance, was Rs 30,000. Hence:
The gratuity is calculated as follows: 15 *20,000 * 15 / 26 = Rs 173076.9
There are two things to keep in mind here:The gratuity sum cannot exceed Rs 20 lakh, according to the Gratuity Act. Anything excess would be viewed as ex-gratia.
If the number of years you worked in the previous year of employment is greater than six months, it will be rounded up to the nearest figure. If your service period is 16 years and 7 months, you will be paid a gratuity for 17 years. Otherwise, it's for 16 years, if it's 16 years and 4 months.
The gratuity amount would be calculated based on the half-month wage on each completed year of service for employees whose employer is not covered by the Gratuity Act.
(15 * your last drawn salary * your working tenure) / 30 is the formula.
For example, you earn Rs 20,000 per month as a base income and you have worked for the company for 8 years and the employer is not covered by the Gratuity Act.
Amount of Gratuity = (15 * 20,000 * 8) / 30 = Rs 80,000.
Hence, following this formula will help you with a solution regarding how to check gratuity amount?
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How To Check Gratuity Amount?
Jimmy
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3 Year
2022-02-22T09:21:20+00:00 2023-07-18T21:21:14+00:00Comment
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