An employer provides gratuity as a financial benefit to an employee as a form of gratitude or appreciation for the employee's service to the organization.
The admin can calculate gratuity for the following scenarios:
- For employers not covered under Gratuity Act: Gratuity = Tenure of service completed in the company * Last drawn basic salary + dearness allowance * 15 / 26.
- For employers covered under Gratuity Act: Gratuity = 15 * Last drawn salary * the working tenure / 30.
Note: As per the Gratuity Act, the amount of gratuity cannot be more than Rs 20 lakh.