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How To Calculate Gratuity Amount | Gratuity Calculator For Central Government Employees

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Gratuity Amount Calculation: Employers may pay gratuities to their employees from their own pockets or purchase group gratuity plans from insurance companies. Annual contributions are then paid to the insurance provider. A group insurance plan usually covers gratuities based on clauses included in the policy. As opposed to the provident fund, the employer must pay the gratuity amount in full since there is no employee contribution.


In return for the services they provided to the company, an employee receives a gratuity from their employer. By offering gratuities to their employees, companies express their gratitude for their services. A company only pays gratuities to employees who have worked for the company for five years or more. Gratuity payments are governed by the Payment of Gratuity Act 1972. A gratuity payment cannot exceed Rs.10 lakhs. In contrast, if the amount exceeds the limit, it is treated as ex-gratia.


To know more visit: Gratuity For Employees


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