Private Sector Gratuity Calculator
Calculation Breakdown:
Last Drawn Salary: ₹0
Years of Service: 0 years
Gratuity Formula: (Basic Salary + DA) × (15/26) × Years of Service
Calculation: ₹0
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Frequently Asked Questions
What is Gratuity in Private Sector?
Gratuity is a lump sum payment made by an employer to an employee as a token of gratitude for the services rendered by the employee. In the private sector, it's governed by the Payment of Gratuity Act, 1972.
Who is eligible for gratuity in private sector?
An employee is eligible for gratuity after completing at least 5 years of continuous service with an organization in the private sector.
How is gratuity calculated for private sector employees?
Gratuity = (Last drawn basic salary + dearness allowance) × (15/26) × Number of years of service. Years of service are rounded to the nearest whole number with 6+ months counting as a full year.
Is there a maximum limit for gratuity in private sector?
Yes, the maximum gratuity amount cannot exceed ₹20 lakhs as per the current regulations for private sector employees.