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Gratuity Calculator – Online Gratuity Calculator to find Gratuity Amount
Any employee of a private company that provides EPF facilities is eligible to receive an amount as gratuity after completing 5 years of service. Groww provides you a free gratuity calculator which you can use and calculate how much your organization owes you. All gratuity payments are controlled by the laws laid down under the Payment of Gratuity Act 1972.
If you are eligible for payment of gratuity, you must first check how much you are eligible for. Our online gratuity calculator will help you in that aspect too.
How can a gratuity calculator help you?
Under the Payment of Gratuity Act of 1972, you are eligible to receive the gratuity amount provided –
- You are near the age of superannuation.
- You have completed 5 years of work in the same organisation continuously.
- You do not have any other full-time employer.
In such cases, a gratuity calculator online in India is useful because –
- It helps you ascertain the precise amount due to you.
- It saves your valuable time and other resources.
- You can use it from the comfort of your home.
- It helps you in long-term financial planning.
The formula to determine gratuity
Groww uses a proprietary formula that is benchmarked with other similar offerings. When you use our online gratuity calculator, the formula used is –
G = n*b*15/26
In the formula, the values are the following.
|N/n||The number of years you have worked in the concerned organisation|
|B/b||Last drawn basic salary plus Dearness Allowance (DA)|
|G||Gratuity amount you are eligible for|
For example, if individual A has worked with an organisation for 5 years, and your basic salary plus DA amounted to Rs. 30,000 every month, you are eligible to receive 5*30000*15/26 = Rs. 86,538.46 as gratuity.
Note that under the existing laws –
- Your gratuity cannot exceed Rs. 10 Lakh in its entirety. Any amount beyond this upper limit is called ex gratia payment.
- Also, if you have worked for, say 17 years and 6 months, the figure will be rounded off to the nearest single digit or 18 years.
How to use Groww’s gratuity calculator?
Follow these simple steps to use the gratuity calculator.
Step 1: Keep all essential details about your employment history handy.
Step 2: Enter the basic pay + dearness allowance value and the gratuity value will be reflected within seconds.
Advantages of using Groww’s Gratuity Calculator
As a market leader in financial affairs, Groww provides you with the most sophisticated tools in the market. Here are the reasons why our Gratuity Calculator is helpful for you.
- Data security is of paramount importance. Our servers are secure and safe for use.
- Our calculator is easy to use and you do not need any technical expertise.
- Groww’s gratuity calculator is never wrong. You can trust our product.
As you can see, we also have other calculators for your use. You can easily make good use of them for free.
“Looking to invest? Open an account with Groww and start investing in direct Mutual Funds for free”
Frequently Asked Questions (FAQ)
Here are some common doubts and queries our clients have.
- Is the gratuity calculator free for use?
Yes. You can use the calculator for free.
- How many times can I use the calculator?
We have not placed any ceiling on the number of times you can use the service. You can use it as many times as you need.
- I have worked for 16 years and 4 months. How many years’ worth Gratuity will I receive?
The laws are framed to round off the total employment period to the nearest full year. In your case, gratuity will be calculated for 16 years. It would be 17 years if you had worked for 2 more months.
- Can I also calculate ex gratia payment using this calculator?
Yes. Anything above Rs 10 Lakh is automatically calculated as your ex gratia payment.