Free Online Gratuity Calculator

Gratuity is an amount that is provided to employees after serving their company for more than 5 years. But many employees face challenges in calculating their net gratuity. You can use Bizfoc free online Gratuity Calculator for easy calculation in few seconds and has team of actuarial consultants who can assist in actuarial valuation of gratuity. However, Gratuity can be claimed after the resignation or retirement. Know the complete eligibility criteria for claiming your Gratuity.

What is Gratuity ?

Gratuity is an amount that is received by the employee from the employer in return for the services he has provided to the company. Gratuity is a compulsory payment that should be made by the company if the employee has been working for 5 years or more. It is mandatory to provide the gratuity to the employee under the Gratuity Act, 1972. In case if a company does not provide gratuity to its employee legal action can be taken. Also, if the employer is found guilty, he can be jailed for 6 months to 2 years.
Remember, the amount of Gratuity is provided once the applicant leaves their job. It might be after the resignation or the retirement of the employee. Also in case of death, the gratuity is paid to the nominee.

Eligibility criteria for Gratuity

The eligibility criteria for Gratuity contain certain limit which are as follow:

• The employee should be eligible for the superannuation.
• You should be retired from the job in order to get a Gratuity amount.
• The employee will get the Gratuity amount if they resigned from the company after successfully completing 5 years or more.
• In case of sickness or accident, the employee is allowed to nominate someone on their behalf. The nominee will get the Gratuity at the place of the employee.

Gratuity Calculation Formula:

It usually takes 5-10 minutes to calculate your total and accurate gratuity. However, you can use the Bizfoc free online Gratuity calculator, which hardly takes 10 seconds to give you an accurate amount of your total gratuity.

Gratuity = Tenure * (Basic Salary + DA) * 15 / 26

Where:

• Tenure: Tenure of service completed in the company
• Salary: Last drawn basic salary + dearness allowance

Example:

You have completed 10 years in a company with a last drawn basic salary along with dearness allowance of ₹50,000.

The amount of your gratuity will be:

10 * 50,000 * 15 / 26 = ₹2,88,462

BizFoc: Best Actuarial Consultant in India

BizFoc has a team of qualified actuaries and Chartered Accountants with more than 10 years of experience. We have issued a gratuity valuation report for multiple industries like manufacturing, financial institutions, and the service industry. Our actuarial consultants will guide you at every step for getting the gratuity valuation within set timelines.

Conclusion

The gratuity valuation is required to estimate the liability in the book of accounts which is required for a true and fair view to the reader of the financial statement. The gratuity valuation requires complex statistical computation which is carried out by the actuarial consultant.

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