Gratuity Calculator

Gratuity refers to the amount that an employer pays his employee, in return for the services offered by them to the company. But in order to receive the gratuity amount, the employee must be employed by the company for five years or more. The Gratuity Calculator will give you the amount that you are eligible to receive on leaving a job after rendering at least 5 years of service to a company.

How Does Our Gratuity Calculator Work?

Our Gratuity Calculator works on the below formula.

Where,

G is the gratuity amount you are eligible for
n is the number of years you have worked in the particular organization
b is the last drawn basic salary + Dearness Allowance (DA)

Please note:
Gratuity considers the number of working days in a month as 26 and it calculates wages at the rate of 15 days.

Example:

Mr. Varun have worked with an organization for 15 years. His last drawn basic salary, including dearness allowance was ₹30,000. Hence, the amount of gratuity he will be receiving can be calculated as:

The calculation would look like below:

Gratuity = 15 * 30,000 * 15 / 26
Gratuity = ₹2,59,615

Varun would receive a gratuity of ₹2,59,615 for his service of 15 years.

We should note some important things here. One is that the amount of gratuity cannot be more than ₹20 lakh, according to the Gratuity Act. The other point is that, if the number of years you have worked in the last year of employment is more than 6 months, then it will be rounded to the nearest figure.

For example, if Varun had worked in his company for 16 years 7 months, then he will receive gratutity for 17 years. However, if he worked for 16 years 4 months, he would receive gratuity for 17 years.

How Should You Use Koshex Gratuity Calculator?

Here is a step-by-step guide on how to use the Koshex Gratuity Calculator.
Step 1: Enter your monthly salary (basic + DA)
Step 2: Enter the number of years you have served in your organization

Once you have entered all the above details, our Gratuity Calculator will do the calculations and determine your Gratuity amount.

Benefits Of Using Koshex Gratuity Calculator

Some of the advantages of Koshex's Gratuity calculator are as below:

• The Gratuity calculator uses minimal effort
• This Gratuity calculator saves time, as you can calculate the maturity amount in a couple of seconds
• The calculator is accurate, so you will get error-free results
• You will be able to plan your finances better with our calculator