All government organization and private firms provide the Gratuity when an employee leaves the department due to retirement, VRS, or resignation.
To calculate the Gratuity amount, a readymade formula is available. As per that;
Gratuity = (Last Month Salary) X Total Service Years X 15/26
You need to complete at least five years of regular service in the Indian Railways on permanent position to get the benefit of Gratuity.
Terms and Conditions
|Max Gratuity Limit||Rs. 20 Lakhs|
|Applicable from||01 January 2016|
|Minimum Service Years||5 Years|
|Income Tax on Gratuity Amount||Nill (for Railways Employees)|
|Service Years Calculation|
|10 Years 7 Months||11 Years (considered for calculation)|
|10 Years 5 months||10 Years (considered for calculation)|
Based on the above, I have prepared a formula for the instant Gratuity Calculation. You only need to enter the details of Basic Pay after 7th CPC at the time of retirement and the total number of service years in the Indian Railways.
Read it also: Railway Employee Pension Commutation Formula