When people retire. And the money given to them every month after retirement is called pension. But after leaving the job, which is Rs. This is called gratuity. Not everyone gets gratuity. Some rules have been made for this. Gratuity is usually given to any employee after retirement. But according to the rules, graduation can be given even before retirement.
But it is necessary to complete 5 years for this job. The Payment of Gratuity Act for gratuity in India was enacted in 1972. Its purpose was to provide financial benefits to them. Who has worked in a company for a long time. Let us know who is given gratuity and how it is calculated.
Gratuity companies give their employees as a reward of work done by them. Any employee will have to work in that company for 5 years to get gratuity. Gratuity is given to both government and private employees. Gratuity and Payment Act applies to all companies, factories, mines, oil fields, ports, railways in India. Any company appointing more than 10 employees also allows its employees to pay gratuity.
Any employee works in any institution for 5 years. So he becomes entitled to get gratuity. But in many places gratuity is also applied for less than 5 years. According to Section 2A of the Gratuity Act, if an employee works in an underground mine, he can take gratuity after 4 years 190 days.
But apart from this, gratuity is available only after 4 years 240 days i.e. 4 years 8 months. Let us tell you that gratuity can be availed only after retirement, you cannot take advantage of it while working in the company.
How much gratuity will be found after retirement or after leaving the job, it will be easily known. For this, you can find out basic salary and DA i.e. dearness allowance x (15/26) X (how many years of job). For example, your basic salary and DA means dearness allowance ₹ 40000. You have worked in the company for 10 years. So you will get 40000 x (15/26) x 10 = 230,769 as gratuity.
