If you work for 7 years and your salary is Rs 65,000, how much will you get in gratuity? Understand the complete account here:

News India Live, Digital Desk: Apart from salary, there are many other things for employed people which secure their future, and one of them is GratuityThis is a reward given by any company to its employee in return for his long and excellent services.

Many people know about gratuity, but are often confused about how it is calculated. So, today let us explain to you in very simple language that if your monthly salary is ₹ 65,000 and you have worked in the same company for 7 years, then how much money will you get as gratuity.

First of all, who is entitled to gratuity?

According to the Payment of Gratuity Act, 1972, if you work in a company where there are 10 or more employees and you 5 consecutive years If you have worked till then, you become entitled for gratuity. You get this when you leave the job, retire or become incapable of doing the job due to some reason.

How is gratuity calculated? Understand its formula

Gratuity is calculated based on a fixed formula. This formula may look a little different, but it is very simple:

Gratuity = (last salary) x (years of service) x (15/26)

Here’s what these things mean:

Now let’s calculate gratuity for 7 years on salary of ₹ 65,000

Let us now calculate your gratuity based on the above formula:

Step-by-step calculation:

So, if your last salary (Basic + DA) is ₹65,000 per month and you have worked in the same company continuously for 7 years, then you will get gratuity on leaving the job. ₹2,62,500 Will meet.

This money is the reward for your hard work, so it is very important for you to know its rules.