Gratuity Calculator
What is a Gratuity Calculator?
A Gratuity Calculator is a tool used to estimate the gratuity amount that an employee is entitled to receive from their employer upon completion of a certain period of continuous service. Gratuity is a statutory benefit provided under the labor laws of many countries and is typically paid as a lump sum amount.
The formula commonly used to calculate gratuity:
The formula for Gratuity Calculation:
The gratuity amount is usually calculated using the following
formula:
\[ \text{Gratuity} = \left( \frac{{\text{Last Drawn Salary} \times \text{Number of Completed Years of Service} \times 15}}{{26}} \right) \]
Where:
-
Last Drawn Salary: The basic salary and dearness allowance (if applicable) that the employee was receiving at
the time of resignation or retirement: - Number of Completed Years of Service: The total number of years and months the employee has completed in continuous service.
How to Use Thinkforu Gratuity Calculator:
1. Enter Last Drawn Salary: Input the last drawn salary of the employee, which typically includes basic salary and dearness allowance.2. Enter Years of Service: Input the total number of years and months the employee has completed in continuous service with the employer.3. Calculate: The calculator will apply the formula and provide an estimated gratuity amount.
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