50000 salary and 10 years of work, how much gratuity will you get? Check the calculation here

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After 5 years of continuous service with any company, you will be eligible to receive gratuity from that company. You will get gratuity amount if you quit your job or retire. The amount received as gratuity is tax-deductible and financially helpful to the employee. The amount you get as gratuity is determined under a formula. The amount of gratuity is fixed on the basis of each person’s salary, years of service etc. Here’s how to calculate your gratuity if you’ve worked for a company for 5 years or more.

Gratuity is determined by this formula

There is a standard formula for determining the amount of gratuity. With this formula, you can also know how much gratuity you will get. Formula – (Last Salary) x (Number of years worked in the company) x (15/26). Last Salary is the average of your last 10 months of salary. This salary includes basic salary, gratuity and commission. Since there are 4 Sundays in a month, 26 days are calculated and gratuity is calculated based on 15 days.

Let’s say you earn 50k

Suppose your last salary is 50 thousand rupees. In this case, the calculation would be 50000x10x15/26 based on this formula. Based on this formula, you will get Rs 288461.54 as gratuity. On the other hand, if the average of your last salary is 50 thousand rupees and the duration of employment is 15 years, then according to the formula 50000x15x15/26, you will get 432692.30 rupees. If the company wishes, it can at its discretion provide an amount in excess of the fixed amount, but as per the rules, it should not exceed 20 lakhs.

In this case the calculation is done differently.

When the company or organization is not registered under the Gratuity Act, the employees are not covered under the Gratuity Act. In this case, it is the discretion of the company whether to give gratuity or not. But if the company still wants to give gratuity to an employee, the formula is different. In this case, the gratuity will be equal to half a month’s salary every year. But the number of working days in a month is considered to be 30 days and not 26.

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