Gratuity calculation formula

Gratuity is a statutory benefit paid to the employees as a token of appreciation for their service to the organization. It is typically paid at the time of retirement or upon the employee’s death or any disablement due to accident or disease.

Gratuity payment usually depends on the amount of the last drawn salary and is a significant retirement benefit for employees in India.

Gratuity is governed by the Payment of Gratuity Act 1972 and is generally paid to those employees who have worked for the company for 5 or more years.

Gratuity calculator for private employees in india

If an employee is disabled due to accident or disease, then they are entitled to gratuity payment before 5 years.

Key Eligibility Criteria under the Payment of Gratuity Act 1972

Minimum Service Requirement: An employee must have completed at least 5 years of continuous service with the same employer to be eligible to receive gratuity.

A continuous period of service includes periods of leave, layoff or absence due to sickness. For it to be a continuous period of service, the employee must not have resigned or been terminated during the period in question.

how to calculate gratuity in indian army

gratuity calculator in india online