Gratuity
is an amount paid to an employee on account of his/her long term association
with an organization or firm. To be eligible for gratuity, an employee has to
complete at least five years of service. You are also eligible for this amount
if you change your job after five years of continuous service in an
organization. If the gratuity amount goes unclaimed till retirement, then the
employee will receive it after retirement.
Let us see how gratuity is calculated in India:
Gratuity calculation formula depends
on the last drawn salary of the employee and his/her period of service.
Earlier, the tax exemption limit on gratuity was Rs. 10 lakhs which has been
increased up to Rs. 20 lakhs as per the latest amendment bill.
There
are two formulae according to which the gratuity is calculated. The first
formula which applies to the organizations that are covered under the gratuity
act is as follows:
▪
Gratuity = (the last drawn salary) x (total years of service) x
(15/26)
The
second formula applies to the organizations which are not covered under the
gratuity act but still prefer to pay gratuity to their employees. The formula
applicable in this case is as follows:
▪
Gratuity = (the last drawn salary) x (total years of service) x
(15/30)
You
must remember that the last drawn salary includes basic salary and other fixed
components that can be seen on your salary slip. Dearness allowance,
performance incentives or any other variable pay are not considered while
calculating the final gratuity amount.
Gratuity
amount helps you collect a large corpus till retirement. However, it is best to
figure out other high-paying investment options which can help you to fulfill
your short term and long term financial requirements. One such lucrative
investment option is fixed deposits. NBFCs like Bajaj Finance provide
high-interest rates up to 8.95% on their corporate FDs, and they also allow the
investors to start investing with just Rs. 25,000. Let us see how to invest in corporate
FD from Bajaj Finance:
You
don't have to wait in long queues to submit the FD application form as Bajaj
Finance allows you to fill and submit the form online. After the verification
of your eligibility, the company will send an executive at your home or office
to collect the necessary documents and cheque. Your FD gets booked after that,
and you can also manage your FD account online through Experia- your online fixed deposit account.
The
online procedure is convenient and hassle-free. Alternatively, you can also
visit the nearest branch to book an FD.
You
can also consider investing your gratuity amount in a corporate FD. You will
benefit from these features if you choose to invest your gratuity amount in a
corporate FD.
High-interest earnings
Bajaj
Finance offers interest rates up to 8.95%. These FDs are certified for their
safety and stability by CRISIL and ICRA. As a result, you get assured and high
returns. The table below shows the interest rates offered on Bajaj Finance FD:
Tenor
in Months
|
Minimum
deposit (in Rs.)
|
Cumulative
|
Non-Cumulative
|
|||
Monthly
|
Quarterly
|
Half-yearly
|
Annual
|
|||
12 – 23
|
25,000
|
8.00%
|
7.72%
|
7.77%
|
7.85%
|
8.00%
|
24 – 35
|
8.15%
|
7.88%
|
7.93%
|
8.00%
|
8.15%
|
|
36
|
8.60%
|
8.28%
|
8.34%
|
8.42%
|
8.60%
|
|
Special
tenors scheme
|
||||||
15 Months
|
1,00,000
|
8.05%
|
7.77%
|
7.82%
|
7.89%
|
8.05%
|
Flexible investment terms
With
Bajaj Finance FDs you can choose tenor from 12 to 60 months according to your
financial needs. You can start investing with a nominal amount of Rs. 25,000.
You can also use the multi-deposit facility to invest in multiple fixed
deposits through a single lump sum payment. You can set interest payout
frequency and tenors for each FD separately. To check your returns in advance,
use the online FD calculator.
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