Gratuity Calculator: Rs 1 Lakh Salary And 15 Years Of Service, How Much Gratuity Will You Get? Check Formula And Calculation

A gratuity is a sum awarded to the worker as a perk for long-term, superior services rendered to the business. The Gratuity Act of 1972 applies to all companies with ten or more employees. You are eligible for a gratuity from the company if have worked there consistently for five years.

You can use a formula to find out how much gratuity you would receive after five years of employment with a particular employer. If you are qualified for a gratuity because of your length of service with the company, you should be informed of how gratuities are calculated.

For Employees covered under the Gratuity Act, the formula is: Gratuity = (Last drawn salary which is Basic + DA) x (15/26) x (Number of years of service).

For Employees not covered under the Gratuity Act, the formula is: (15 × last drawn salary × working tenure)/30.

If an organization is not registered under the Gratuity Act, its employees are not covered by it. Nonetheless, employers of corporations that are not registered under the Gratuity Act may choose to freely give a gratuity to their staff members. However, in this case, the method for determining a gratuity is different. In situations like these, the gratuity will be equivalent to one-half month's income per year. However, a month will be counted as 30 working days rather than 26.

If you are paid Rs 1 lakh and have worked for a company for 15 years, you can figure out how much money you will get as a gratuity. If we look at the calculation of gratuity formula, considering you worked in a company for 15 years and your last drawn salary was Rs 1 lakh, then the calculation formula will be (1 lakh) x (15) x (15/26). After calculation, the total will come to Rs 865384.615, which will be given to you as gratuity.