Having good knowledge about gratuity is very important, especially if you are an HR manager. Although gratuity is a well-known employee benefit, there are still many people who do not have a clear understanding of it. Taking this into account, we have included some critical facts about gratuity that every working individual should know. From it’s meaning to its significance, we will help you learn a host of things in this blog. So, let’s dive in.
For people who do not know, it is derived from the word ‘gratuitous’ that typically means ‘complimentary’. Every employer in India is bound to pay this employee benefit to his or her employees. It is given as a token of appreciation for an individual’s hard work, dedication, and time invested in an organization.
How Can One Calculate It?
Most of you may think that calculating gratuity is a complicated process; however, it is not true.
If known the trick, anyone and everyone can calculate it without any challenge. So, if you want to calculate your gratuity, you should know that the whole calculation depends on two major factors, which are-
Your total employment period
Your last drawn salary
Now, here is the Formulae- last drawn salary X no. of the employment period
If you do not have enough time to do the whole calculation manually, you can also rely on an online gratuity calculator.
Using a gratuity calculator, you can know your total gratuity amount in just a fraction of time. It is one of the easiest ways to calculate one’s gratuity.
According to the Income-tax Act, 1961, the gratuity amount is exempted from tax up to a specified limit.
Who is Eligible For It?
To get gratuity, there is only one condition that should be met by a person. He or she is supposed to complete 5 five years employment period in the firm.
Furthermore, you even request this amount even before completed 5 years but there are a few conditions for the same, which are mentioned below:
If the person dies
If the individual becomes disabled
In both the aforementioned cases, the payment can be made before the specified time period.
Also, every employer out there holds the right to forfeit this payment both entirely or partially. This can happen only if an employee was fired after any wrong or unprofessional actions or when he/she tried to physically harm another worker during his employment period.
Key Notes For Employers
The Payment of Gratuity Act applies to every company and business in India that has 10 or more headcounts. In India, it is considered one of the important forms of social security in which a part of the salary is acquired by an employee from his or her employer in return for their valuable services for the growth of the firm.
Employers should know that gratuity payment is a statutory requirement and failure to pay this amount to an employee is subjected to several serious punishments such as fines, and imprisonment of six months that can extend to two years. So, it is the responsibility of employers to know the importance of this payment.
That is it, these are some vital information about gratuity everyone should be clear about.
Now, HR professionals may find it a time-consuming process to calculate each employee’s gratuity amount amid managing other HR operations. This is when HRMS software comes into play. Such systems are automated software tools that allow HRs to calculate gratuity in just a few clicks. The right software can handle gratuity and look after all necessitating needs of an employee’s settlements during his or her resignation. So, it is highly recommended to every company leave behind manual methods and consider an HRMS login as soon as possible. Now that we have helped you to understand gratuity, gratuity calculator, and even suggested a digital solution for your business, help your employees and educate them as well.
Did you know one of the rites of passage that every American goes through is buying a car? Having an automobile in your name is much more than a buying decision. Emotions and feelings are attached to your first vehicle. Additionally, an automobile has the potential to make or break your future financial stability. So, you must take every step with caution and due diligence.
Car Buying Tips: Do not become one of these Buyers
If you are unable to make timely payments or you end up in an upside-down car loan situation, it will affect your credit report. To make sure you do not fall down the rabbit hole of a bad credit score and crushing debt, you must make prudent decisions. Do not be like any of the following car buyers and avoid a terrible auto loan:
1. The Show Off
You may be excited about buying a car. An expensive automobile is a big step up the social ladder. However, you should not be the Show-Off car buyer because they end up with terrible auto loans. Focus on buying a car that is within your means. Choosing a car beyond your budget puts you at risk of repossession. There is nothing good about repossession because it will stay on your credit report for years.
Having the blemish of repossession or bankruptcy on your credit score will put you at a disadvantage. It will prevent you from getting lower interest rates for a long time. So, do not be a Show-Off. Learn what kind of car you require. Find out who all be driving your vehicle, and then shortlist a few models that match your budget. Be the Prudent Guy!
2. The Payments Guy
When you are only worried about the monthly payments on an auto loan, you stop looking at the big picture. The Payments Guy is only concerned about the lowest monthly payment amount. But a small payment amount does not translate to better savings.
Lenders often attract customers by offering smaller monthly payments over extended loan terms. It means the car buyers end up paying more money in the form of interest rates. Additionally, you also run the risk of an upside-down car loan situation. For example, the total loan amount after deducting the down payment is $20,000. You opt for a loan term of 60-months with an interest rate of 8%. The monthly payment amount will come to $405.53, and you will pay an interest amount of $4,331.67%. Now, if you request the lender for a lower amount of $350, your loan term will extend to 72-months, and you will have to pay a total interest of $5247.87.
Do not focus only on the monthly payment. Instead, discuss the loan term and APR as well. Find out if there is any pre-payment penalty involved or not.
3. The Lone Warrior
The Lone Warrior is a car buyer who sets out to buy a car on his/her own. The car buying process is a complex one. It can be overwhelming, especially when you are making it on your own. Emotions can come in the way of making prudent decisions. It always best to bring a friend when shopping for a car. It helps to have a third set of eyes so that he/she can be objective in your process and ensure that you make the right financial decision.
Often, the Lone Warrior believes in taking care of the financing process of their own. However, it is a fact that having a co-signer helps in getting quick auto loan approval and better interest rates. So, convince your colleague, friend, or family to become a co-signer for your auto loan and enjoy faster pre-approval.
4. The No-Savings Buyer
The auto financing industry is built on the truth that car buyers do not have sufficient money to fund the vehicle. However, it is a wrong move to opt to buy a car with zero savings. Even if you do not have money to make a down payment of 20%, it is wise to save up money for car-related emergencies such as fuel-change, repairs, and maintenance. It will ensure that you do not seek out exorbitant personal loans to take care of your car.
When you decide to buy a new car, consider the amount of monthly payment that is comfortable for you. Set aside the payment amount of at least three months so that you can make regular payments even if your income source is affected due to any reason. When you do not have money for a down payment, you can always apply for zero down payment auto loans, but when you do not have savings to fall back on in times of emergencies, it will affect your credit score terribly.
Say No Terrible Auto Loans and Bad Credit Score
As discussed earlier, your car buying decision has the potential to build your credit score. If you make cautious and practical choices, you will enjoy the best interest rates for years to come. But, if you choose the emotional option, it may affect your financial situation severely. Say no terrible auto loans and avoid the troubles of a bad credit score by becoming a prudent car buyer.
The Vitae utility token is supported with a high-tech blockchain. Vitae AG does not sell nor buy Vitae tokens, they can only be traded on independent exchanges.
Koinbazar – India’s most trusted cryptocurrency & bitcoin exchange platform with ultra-secure, professional, comfort and you can easily buy bitcoin, ethereum, and other cryptocurrencies. Trade VITAE to INR on koinbazar but before that, you have to complete the below-mentioned steps as follows.
How to register your account:
The below-mentioned steps are to complete your account registration process,
Step 1: Visit the Koinbazar website.
Step 2: Select signup and enroll the details required.
Step 3: Once you complete, click “Create Account”. An activation mail will send it to your registered Email-ID.
Step 4: Open it and click the activation link. And your account is successfully created.
Steps to complete the KYC verification process:
The below-mentioned steps are to complete your KYC verification process,
Step 1: Sign in to your account and select Account —> Profile
Step 2: Under the KYC section you need to complete the following prospects.
i. Choose your required ID proof.
ii. Upload your frontside and backside ID Proof.
iii. Take a selfie of your face for KYC identification.
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After the procedures get complete, you can legally deposit your funds by connecting your bank details or from the external wallets to your koinbazar wallet. So, start buy and sell Vitae/INR safely with us and enjoy a hassle-free trading experience.
Remember the old tongue twister “she sells sea shells by the seashore”? I heard someone say that today and for some odd reason it made me think about being an offline consultant. Strange, I know, but bear with me a moment and I’ll explain why.
For the first time ever I considered the odd nature of the tongue twister. Who is this lady making money selling sea shells when anybody can get all they want for free on the sea shore? Does this woman possess some secret knowledge about sea shells that would motivate people to willing give her money?
When you think about it the same could really be said for the service that most offline consultants provide. I don’t mean to devalue your business but it’s true.
Just think about it.
Right now there are more than 900 million users worldwide on Facebook. Isn’t that proof that just about anyone and their grandmother can create a Facebook page? The same is true for setting up a twitter profile or submitting a video to YouTube. Social media is not rocket science.
Yet local business owners hire offline consultants everyday to take care of marketing tasks that they could actually do on their own. As a result you become like the lady who sells seashells by the seashore.
So what makes local business owners gladly hand over their hard earned money for simple marketing jobs that you could probably do in your sleep? In reality, your ability to become a successful offline consultant depends largely upon three main factors.
1. You possess more knowledge on a particular subject and can deliver better results
2. You have more time available to focus on getting a job done better yourself
3. You have more resources to help you get a job done even quicker
That’s it. Your value increases based upon your availability of more knowledge, time or resources. Let’s consider these examples.
Maybe you know some secret to getting a local dentist’s website to outrank the competition on Google. Certainly a busy plumber would be glad to pay you each month to spend a few hours doing social networking if you’re bringing him loads of customers. You can even take either of these jobs and hand them off to your personal resources – a superstar outsource team.
Doesn’t this make being an offline consultant seem easy? The truth is not only is being an offline consultant truly easy… it’s also a win-win situation for local business owners and for your consulting business as well.