Gratuity: What is it; How it is calculated; What are benefits and, more? All you need to know!
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Gratuity: What is it; How it is calculated; What are benefits and, more? All you need to know!
Gratuity is the money which is paid by an employer to his employee in return for services. It is governed by the Payment of Gratuity Act 1972. The Gratuity Act caps the amount of gratuity at Rs 10 lakh. You need to complete at least five years of service
Jan 15, 2020
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Take this money before leaving job - Gratuity 💸 🔶But how to calculate gratuity amount? 🔶As per Payment of gratuity Act, 1972; Gratuity amount is calculated as - Your last drawn salary × tenure of working × 15/26 🔶Last drawn salary includes your basic salary & dearness allowance 🔶If the number of years you gave worked in the last year of employment is more than 6️⃣months, then it is rounded of the nearest figure 🔶Under the gratuity act, employer is liable to pay maximum 20 lacs as gratuity
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