Gratuity Calculation and Eligibility Rules: A Complete Guide
Gratuity is a retirement benefit provided by employers to employees who have completed a minimum of 5 years of service. Gratuity calculation is based on the employee's salary and tenure of service. This guide will help you understand how to calculate gratuity and the eligibility rules for receiving it.
What is Gratuity?
Gratuity is a lump sum payment made by employers to employees who have completed a minimum of 5 years of service. The amount is calculated based on the employee's salary and tenure of service.
Gratuity Calculation Formula
Gratuity calculation formula is: Gratuity = (15/26) x Last drawn salary x Number of years of service. Use BharatBills Gratuity Calculator to determine the exact gratuity amount based on your salary and tenure of service.
Eligibility Rules for Gratuity
- ✓ Minimum 5 years of service
- ✓ Regular termination of employment
- ✓ Voluntary termination of employment after 5 years
Conclusion
Gratuity is a valuable retirement benefit provided by employers to employees who have completed a minimum of 5 years of service. Calculate your exact statutory payout using the BharatBills Gratuity Calculator, assess your take-home pay with our Salary Calculator, and browse our Salary Calculators Hub.
Put the principles from this guide into practice with our free calculators: