Gratuity Calculator

If you're an employee of a private company in India, you're eligible to receive gratuity under the Payment of Gratuity Act 1972 after completing five years of service. However, in certain circumstances such as injury or disability due to an accident or disease, you may be eligible for gratuity even before five years. The gratuity amount is calculated based on your last drawn salary, including basic salary and Dearness Allowance (DA), and the number of years you have worked in the company.

How to Use the Gratuity Calculator by Ashiana Housing

To help you calculate your gratuity amount, Ashiana Housing offers a free gratuity calculator. This tool is essential for employees who wish to determine how much gratuity they are eligible for. By simply entering your last drawn salary and the number of years you have worked, you can quickly find out the gratuity amount you are entitled to.

Gratuity Calculation Formula

The gratuity calculation formula used by Ashiana Housing’s online tool is:

G = n × b × 15 / 26

Where:

For instance, if you’ve worked for 5 years with a monthly salary (including DA) of Rs. 30,000, the gratuity amount would be:

G = 5 × 30,000 × 15 / 26 = Rs. 86,538.46

Key Factors of Gratuity

• Your gratuity cannot exceed Rs. 10 lakh, with any amount above this considered ex gratia.
• For work periods beyond 5 years, fractions like 17 years and 6 months will be rounded off to 18 years.

How the Gratuity Calculator Helps You

The gratuity calculator is a great tool because it:

• Saves time by providing instant calculations.
• Helps with long-term financial planning by providing clarity on the amount you’ll receive.
• Is available online, so you can access it from anywhere in India, including cities like Bangalore, Pune, and Mumbai.

Advantages of the Gratuity Calculator by Ashiana Housing

• Easy to use:No technical expertise needed.
• Secure: Our servers ensure your data is safe.
• Accurate: You can trust our gratuity calculator for private employees to provide precise results.

Eligibility for Gratuity

To be eligible for gratuity, you must meet the following criteria under the Payment of Gratuity Act 1972:

• You should have completed at least 5 years of service with your employer.
• You are eligible for gratuity if you're near the age of superannuation, have worked continuously, and have no other full-time employer.

If you meet these criteria, use our free online calculator to determine how much gratuity you are entitled to.

Gratuity Taxation

The taxation on gratuity depends on the type of employee:

• Government employees: Gratuity is exempt from tax.
• Private-sector employees: The tax-exempt gratuity amount depends on several factors, with a lifetime limit of Rs. 20 lakh.

How to Use the Gratuity Calculator

1. Gather essential details about your employment, such as your last drawn salary and years of service.
2. Enter the data into the gratuity calculator online to instantly calculate your gratuity.

Conclusion

Ashiana Housing’s Gratuity Calculator is an invaluable tool for private-sector employees looking to understand and calculate their gratuity entitlement. By simplifying the process, this user-friendly calculator helps you determine the gratuity amount based on your years of service and last drawn salary. With its accurate and instant results, the calculator assists in effective financial planning, giving you clarity on your future benefits. Whether you are nearing retirement or assessing your eligibility for gratuity, Ashiana Housing ensures that you have the right tools to secure your financial future with ease.