Benefits Of Gratuity Calculator

Benefits Of Gratuity Calculator

Gratuity is the amount a company pays to employees in return for their services. Gratuity is payable in lumpsum to employees who have worked for more than five years in the company. In India, there is a Payment of Gratuity Act, 1972 that governs the rules regarding gratuity payment. If the employees do not know the rules of this act, gratuity calculation becomes a complex task for them. However, the gratuity calculator is a beneficial tool for them in such a situation. Its benefits are-

1. Quick Result

Gratuity Calculator is very quick in calculating and telling the gratuity amount. The formula to calculate the gratuity amount is already coded in a Gratuity Calculator tool. A user only has to insert the values in the calculator. The calculator asks for the total base salary and the number of service years of the employee. Based on these two data, the calculator estimates your total gratuity amount. The process of manual calculation is very complex and time-consuming. Hence a gratuity calculator is beneficial.

2. Available Anytime

A Gratuity calculator tool is accessible on mobile phones, tablets, laptops, or computers. Hence, you can access them anytime and anywhere with an internet connection. With the help of this calculator, you can also help others in calculating their gratuity amount. Gratuity is the lumpsum amount employees receive on leaving the company. It is an important resource for future financial planning. That is why you may have to calculate the gratuity amount anytime and from anywhere.

Gratuity Benefits and its Calculation under UAE Labour Law

3. Accurate Result 

The best benefit of a Gratuity Calculator tool is that it gives accurate results. The formula to calculate gratuity is coded in the tool, and the machine calculates values to get the result. As a result, there is no possibility of human errors in calculation. Secondly, you do not need to know the formula of gratuity calculation. Understanding the formula is not easy for everyone. It may bring flaws in the manual calculation of gratuity amount. But a Gratuity calculator does not have these flaws. Hence, the gratuity amount calculated by a Gratuity Calculation tool is more reliable than the manually calculated amount.

4. The Calculator Is Accessible For Free

Gratuity calculation tools are available free of cost on the Internet. You only need an internet connection to access the online tool. It does not take any extra charges for Gratuity Calculation. You can use the online tool any number of times in a day.

5. Financial Planning For Old Age

The gratuity calculator is basically the amount employees receive for their old-age maintenance. Hence, a Gratuity Calculator tool can be used to know the amount you will receive on retirement. After knowing the amount, you can plan to use it or invest it in multiple ways.

Hence, it is better to use a gratuity calculator tool for calculating the amount of gratuity you are eligible to receive from your company. Notably, in case of accidental disability, health issues, and untimely death of an employee the gratuity is given even if the 5-year period does not complete. To calculate the gratuity, you can refer to the 5paisa gratuity calculator. It is quick, accurate, and reliable.