Gratuity eligibility
- how to calculate gratuity in ctc
- how to calculate gratuity as part of ctc
- how much is gratuity in ctc
- gratuity included in ctc
Gratuity calculator for private employees...
How to calculate gratuity in india
Have you ever looked at your CTC (salary) structure and wondered what the Gratuity component sitting at the very bottom is all about? How is this gratuity calculated? What is the Formula used?
When would it be paid? In this post answer these questions and also give you an Excel Gratuity calculator.
What is 15/26 in gratuity calculationUsing the Gratuity calculator you can figure out the amount you would get on retiring or when leaving the company.
Contents
What is Gratuity in Salary?
Gratuity is a mandatory retirement benefit an employer (with more than 10 employees) has to provide for all its employees and governed by Payments of Gratuity Act 1972.
This is like saying “Thank You” to the employee for providing their long term services to the organisation. Gratuity is paid to the employee on retirement or when they leave their job. To be eligible for Gratuity, the employee should have worked at least for 5-years continuously with the employer.
Gratuity is also paid in cases of death or disablement due to accident or disease (even if this occurs before 5 years).
From an employer perspective