Along with getting a salary every month, a salaried person also gets many other benefits. Gratuity is also one of them. If you work continuously for 5 years in a company, then you become entitled to get gratuity from the company. You get this amount on the occasion of leaving the job or retirement. The amount of gratuity is fixed under a formula. This amount can range from thousands to lakhs. Many people spend this amount according to their needs. But smart people invest the gratuity amount instead of spending lakhs of rupees and earning huge profits on it. Know here which formula decides gratuity and where you can invest the gratuity amount.

First, understand how gratuity is decided.

There is a fixed formula to calculate gratuity. Total gratuity amount = (last salary) x (15/26) x (number of years worked in the company). Suppose an employee worked in the same company for 20 years. If the last salary of that employee is Rs 75000 (including basic salary and dearness allowance), then he will get around Rs 8.65 lakh as gratuity ((75000) x (15/26) x (20)= Rs 865385). In the formula of gratuity calculation, only 26 days are counted in every month, because it is believed that there are 4 days of leave. At the same time, gratuity is calculated based on 15 days in a year. Know in the slides below where you can invest the gratuity amount.

Senior Citizen Savings Scheme
If you have received a gratuity amount on retirement and it is in lakhs, then you can invest this amount in Senior Citizen Savings Scheme (SCSS). Your money will be deposited in this scheme for 5 years. At present, 8.2 percent interest is being given to this scheme. In such a situation, good income can be earned from interest on gratuity amount.

Invest in gold
Gold is a necessity for everyone. There is a need to buy gold jewellery on many occasions including marriage at home. The price of gold is increasing rapidly. In such a situation, you can buy gold jewellery from the gratuity amount by looking for the right opportunity. Its price will increase with time and in the future when you will need gold jewellery in children's marriage etc., then you will already have a lot of gold. At that time you will not have to get jewellery made at expensive rates. If you do not want to buy physical gold, then you can also buy digital gold, gold ETF, etc. with this amount.

Mutual Funds
If you have an understanding of the market, then you can invest it in Equity Mutual Funds or Debt Mutual Funds. If you want, you can invest after taking advice from an expert in this matter. This will help you earn better profits.

Fixed Deposit
If you do not want to take too much risk on your money, then you can invest a lump sum amount in FD. FDs are of different tenures. You can choose FD as per your convenience and can earn good interest on it.

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