Fixed deposit variants
Digital FD Only on App/Web
FD - Age below 60
Systematic Deposit Plan
FD - Senior Citizen
FD – Special Tenure
How to use Bajaj Finance gratuity calculator?
It is easy to use the Bajaj Finance gratuity calculator. You only need to enter the correct data for the calculator to do most of the work for you. To calculate your gratuity value, provide the pertinent information below.
a. Monthly income: Using the slider, you must input the base pay and, if necessary, the dearness allowance. You can also input the value directly.
b. Tenure: The number of years spent working for the company is then entered.
Based on the above data, the gratuity calculator determines the total amount of gratuity due to you. By adjusting the input sliders, you can recalculate the gratuity whenever you like. Moving the sliders will immediately calculate the gratuity.
Benefits of Using the Bajaj Finance Gratuity Calculator
The Gratuity Calculator is a helpful tool because it makes figuring out your gratuity amount easy and quick. It takes the guesswork out of calculating and ensures you know how much money you can expect after completing a certain number of years in your job by inputting your Monthly Income (basic+DA) and tenure. This calculator is especially handy for employees to understand their entitlement and make informed financial plans.
What are the Taxation Rules for Gratuity?
Gratuity received by government employees is fully exempt from income tax.
For private employees, it hinges on whether these employees meet the eligibility criteria outlined in the Payment of Gratuity Act. Tax exemptions are determined based on this criterion.
Employees covered under the Payment of Gratuity Act enjoy tax exemption under specific circumstances. Among the following options, the one that is the least qualifies for tax exemption:
- Gratuity of Rs. 20 lakh
- The final salary amount is calculated by adding together the basic salary and dearness allowance (DA), then multiplying the result by the length of employment, and finally multiplying that by the total number of working days in a month.
- The actual gratuity amount received
Where should you invest your gratuity funds?
Gratuity funds can fetch you higher returns if invested wisely. Do not let the gratuity money stay idle in your savings account, where it will only give negative returns, accounting for inflation. You can easily earn good returns by investing such lumpsum into fixed deposits, a lucrative, safe, and highly stable investment option.
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Frequently asked questions
You can calculate the gratuity using the formula gratuity = (15 × last drawn salary × working tenure)/30. You can also save time and use the Bajaj Finance gratuity calculator to know the final gratuity value due to you.
As per the new rule of gratuity, every year of service, an employee is entitled to 15 days of pay as gratuity. The company is required to pay an amount equal to 15 days of the employee's most recent wage as part of the gratuity for each year of service.
For gratuities, employees must have at least five years of service: Those who have worked for the company for five years are entitled for gratuities. The requirement does not, however, apply when an employee passes away or becomes disabled.
Yes, there is an upper limit set at Rs. 20 lakh as per the Payment of Gratuity Act, 1972
Within 30 days of the employer receiving the application form, the gratuity sum must be paid. If the employer misses the deadline, he is responsible for paying the gratuity amount plus simple interest.
The gratuity sum remains payable even in the event of your employer facing bankruptcy. No court order can impose a stay on the disbursement of the gratuity amount.
Most of the time, gratuity money represents your life savings because it is acquired at the time of retirement or changing jobs. You could make more money if you put money into a gratuity fund. You might be hesitant to put them in high-risk ventures, though.
If you invest gratuity money in a Bajaj Finance Fixed Deposit (FD), you will receive higher FD rates of up to 8.85% p.a. It is interesting to note that your money will also be secure because one of the safest investment alternatives is a fixed deposit. Additionally, Bajaj Finance Fixed Deposits enjoy a [ICRA]AAA(Stable), indicating the highest level of safety and lowest investment risk. BFL FD have also a rating of CRISIL AAA/ STABLE, which is another reason to invest.
You can use the FD calculator to determine how much interest you can earn by investing your gratuity amount in fixed deposit.
If you've worked for 4.5 years, you may not be eligible for gratuity, as typically, a minimum of 5 years of continuous service is required.
Contract employees are eligible for gratuity if they complete 5 years of continuous service with the same contractor, as per the Payment of Gratuity Act.
It is mandatory to make a Gratuity nomination within 30 days of completing one year of employment as per the Payment of Gratuity Act, 1972,. Only 'family members' are eligible for nomination, and in the absence of 'family' members, you have the option to nominate anyone to receive the Gratuity. To fulfill this requirement, you need to complete and submit Form 'F'.
The gratuity amount calculated is an estimate only and is computed based on the information provided by you. Therefore, the actual amount may be slightly different.