Gratuity Rule: Employees will get gratuity of Rs 6,49,038 on 15 years of service, understand the calculation

News, Digital Desk- (Employees News) When an employee works in a company for 5 years continuously, he is given gratuity on leaving the job. This is a reward given for the better services of the employees. 

Every employee wants to know how much amount he will get as gratuity on leaving the job. It is calculated on the basis of a certain formula.

Let us know which formula (Gratuity Calculation Formula) is used to calculate gratuity.

Last salary x Years of service of the employee i.e. number of years worked in the company x 15/26

Let us understand with an example-

Let's assume that you worked in a company for 15 years. When you left the job, your last salary was Rs 75,000. So let's understand how much amount the employees will get as gratuity.

The average of the last 10 months' salary is calculated in the final salary. In this, the basic salary of the employee and Dearness Allowance as well as the commission amount are added. 15 days and 4 Sundays in a month are removed and the calculation is done with 26 days.

Gratuity is calculated according to this formula-

75000 x 15 x 15/26 = Rs 6,49,038

i.e. when employees leave the job after 15 years, they will get an amount of Rs 6,49,038 as gratuity.

When will the calculation be different-

If a company is not registered under the Gratuity Act, it can still voluntarily give gratuity to employees. Registration is not required for this. In such a case, 30 days per month will be considered instead of 26 for calculating gratuity, which will change the formula.