Gratuity calculator for Central Government Employees
In Gratuity calculator for central government employees, the ‘Gratuity’ defines the some amount/ part of salary that we receive at the end of our employment service period i.e. retirement. The recent legislation has made by the government of India i.e. Payment of Gratuity act 2018 which came into force on March 29th adopted by the Ministry of Labor & Employment.
According to the Payment of Gratuity act 1972, any outlets or infrastructures like factory, plantation, port & railway companies, shops, mines, oil production etc., tends to provide gratuity for their employee who has 10 or more employees in its firm since 12 months from the day of commencement.
Gratuity calculator for central government employees is an essential aspect that government employees really don’t realize the value. It’s a part of salary that they don’t even receive every month but only at the end of their service tenure by their respective employer/ official superior.
It has some considerations regarding the payment of gratuity like in case of death and disablement, the sum amount under the gratuity is paid irrespective of service period to that respective civil servant or his/ her blood related members.
Formula for Gratuity calculator for Central Government Employees:
Here is one such formula to help you out with Gratuity calculator for central government employees as below :
Ø The Gratuity amount formula for those who were considered under Gratitude Payment act
Gratuity amount = (Number of years of employment* Last drawn salary* 15)/26
Ø The Gratuity amount formula for those who were not considered under Gratitude Payment act
Gratuity amount = (Number of years of employment* Last drawn salary* 15)/30
Here, last drawn salary refers to each month salary in basic + DA
To know about the service tenure/ no. of years of employment from the last year of your service in organization you must be aware of these aspects -
During the last year of your service, if you work for above or equal to 6 months then it is considered as 1 year (or) if you work for below or equal to 6 months then it is considered as 0 year.
For example; if a person works for 9 years 5 months then it is rounded off as just 9 years. If that same person works for 9 years 7 months, then it is rounded off as 10 years.
For the better understanding of Gratuity calculator for central government employees, let’s take one more practical example. Assume that a person named Ravi has worked in an organization for 15 years and his last drawn salary is 2 lakhs per month, with this information we can calculate the gratuity with the above provided formula
Gratuity amount for Ravi = 15*200000*15/ 26
= Rs. 1,730,769 /-
Gratuity calculator for Central Government Employees in case of death/ disabilities:
There are enumerous possibilities available to check Gratuity calculator for central government employees in case of death/ disabilities through various resources relating to that respective person or his/ her blood related persons might receive instead of them.
For that, one must have the following details to retain the exact number of gratuity amount from government :
- Joining date
- Date of birth
- Date of retirement
- Type of retirement
- Total service
- Monthly salary (Basic pay + DA)
Taxation on Gratuity calculator for Central Government Employees:
Tax is a monetary sum which has to pay for the government with accordance to the respective income levels (or) source of income of individuals. Earlier, the gratuity payment used to have tax limitation up to 10 lakhs however, recently an amendment has approved that relives the tax up to 20 lakhs under the section 10(10) of Income tax act, 1961.
When it comes to the tax payment on gratuity, the government employees who belong to the local, state & central public corporations are levied with no tax by the Indian government.
However, Gratuity calculator for central government employees would impose no tax over the amount which does not exceeds 10 lakh worth rupees of gratuity amount of an individual. But if an individual was entitled to receive amount of 15 lakh rupees then the 10 lakhs would be shown as gratuity amount and the rest 5 lakhs were considered as bonus received by their respective employer. An individual (civil servant) can be imposed with no tax on the grounds of gratuity tax exemption act section 10(10) of Income tax act & gratuity taxed under ‘Income from salaries’ in three aspects -
Ø Sum of gratuity payment should be less than 10 lakhs.
Ø Amount procured through gratuity payment formula.
Ø Actual gratuity received by allocating access into bonus or gifts.
FAQs on Gratuity calculator for Central Government Employees:
How does Gratuity calculator for central government employees works?
Gratuity is always calculated through this formula - last drawn salary (basic pay + dearness allowance)*no. of years experience* 15/26. With the applicable taxation on worth amount of 10 lakh+ rupees.
What is the service limit to be eligible for gratuity?
A government employee must work for atleast 5 years in one public organization in order to receive the gratuity amount after leaving the firm after his/ her service tenure. Moreover the last year of work experience includes more than 6 months then it is completely considered as 1 year & less than 6 months is considered to be 0 year (i.e. those last months were not considered).
Will supplementary or special allowances are added to the gratuity amount?
According to the ‘Gratuity taxed income from salaries’, no special & supplementary allowances were taken into account while providing the gratuity to the retired employees more than basic pay & DA(dearness allowances).
How to calculate/ get gratuity amount in case of death/ disabilities?
There is a 3 step process for Gratuity calculator for central government employees that one must follow to get the details of gratuity amount that received while in case of death/ disabilities -
1) We must go through the gratuity calculator portal where the total service years and months will be auto generated through input fields.
2) Enter the basic details related to that respective civil servant.
3) Results for gratuity amount for the both registered & non registered employees under Gratuity Payment act will be auto generated.