Gratuity is the amount that an employee or worker gets at the time of retirement as their reward of assistance they delivered in company only after 5 years.. This amount is calculated according to the employee’s last month salary and the time of period they delivered service to the company. Sometimes workers with less tenure than 5 years get this sum in the case of emergency, accident or any instability with the worker.
Gratuity sum can be easily calculated by using a gratuity calculator. This calculator works for calculating the amount within seconds, so you don’t have to. In this blog, you will learn about its calculation process and the benefits of a gratuity calculator.
How is gratuity calculated under the payment of gratuity act?
The payment of Gratuity Act 1972, implements some payment regulation regarding gratuity. This act has classified the employees in two bread categories
Employees covered under this act
Employees that are not covered under this payment of gratuity act.
Both categories has different method of calculation as the workers under the act have distinct formula calculated as: n*b*15/26.
Whereas for other category it is slight changed formula as n*b*15/30
Benefits of using the gratuity calculator ?
Gratuity calculation is a very important step for gratuity payment that you can easily calculate by just entering last month’s salary and entering years you delivered your services to the company and just by clicking submit you will get output as gratuity amount. That you can adjust by changing the salary and time period. Look how easy it was.
There are various benefits of using this Gratuity calculator:
Define reliable gratuity:
Gratuity calculator promises to provide the correct gratuity amount. You don’t have to think about reliability, It never gives wrong output.
Saves your time:
This calculation is very simple but yet time taking. So instead of doing it manually and input enough time in processing the calculation, you can save your time by calculating within a second with the help of this calculator.
This calculator is free and quick to use:
You don’t have to pay for any charges to use this calculator. It is completely free to use and provides frequent results with no delay. It is amazing to use it without any resistance.
Accessible to use by any device:
Special benefits of this gratuity calculator is that it is available on any device or web. You do not need to buy a special device to use it. This calculator can be operated by any medium
Conclusion
Huge companies have to go through these calculations so much and operating them manually is a difficult task so to sort it, Gratuity calculator makes it very efficient to calculate such calculations. However these calculations are based on the factors like job terms or the basic salary of the company. So ensure remembering these aspects for more efficient calculation.
This incredible calculator is available on 5paisa for you so you can use it, as well they also offer a CAGR calculator that calculates the average rate of return on your investment over the year. You should definitely try these calculators to make all your calculations efficient.
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