Do you also want to know the value of your hard-earned money? Do you know how much gratuity you can receive when you leave your job or retire? In fact, if your basic salary is ₹65,000 and you've worked for 12 years, this news is for you! Today, we'll explain the full math of gratuity so you can find out your entitlement from the comfort of your home.

What is gratuity? Understand it in simple terms!
Let us tell you that gratuity is a kind of "thank you" gift that companies give to their employees for their long and loyal service. It's usually only given after a certain period of work, such as 5 years or more. Therefore, it's meant to provide financial security to the employee.

What rules determine gratuity?
Gratuity is a financial benefit that an employee receives after working for an organization or company for a long time. It is provided under the Payment of Gratuity Act, 1972. According to this law, gratuity applies to two types of employees. First, employees who fall under the purview of this Act, that is, those whose company is registered under this Act and employs at least 12 employees. Second, employees who are not covered by the Act, such as some small companies or institutions, which are not covered by this Act, but can still provide gratuity benefits to their employees according to their own policies.

Calculating Gratuity on a Salary of ₹65,000
Now, let's discuss how gratuity is calculated for employees who fall under the purview of the Gratuity Act. So, suppose your basic salary is ₹65,000 per month and you have worked for a company for 12 consecutive years. According to the formula, with a basic salary of ₹65,000 and 12 years of service, your gratuity amount will be over ₹4 lakh. This means that with a salary of ₹65,000, you would receive ₹450,000 at maturity after 12 years.

12 years of service will be amazing.
This means that if you have worked continuously for 12 years, the company will give you a gratuity of approximately ₹4.5 lakh. This amount is paid as a lump sum upon retirement, resignation, or leaving the job. Therefore, every employee should know their service details and gratuity eligibility so that future financial planning can be better planned.

What the rule says
Gratuity is considered a recognition of an employee's dedication and long tenure. It is a financial reward given in the event of retirement, leaving the job, disability, or death. According to the law, every employee receives an amount equivalent to 15 days' salary for each completed year of service, based on a 26-day working month. This is an employee's legal right, which no company can withhold.

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