Gratuity

Gratuity is a statutory benefit provided under the Payment of Gratuity Act, 1972. It serves as a form of financial recognition for an employee's long-term service with the company.

Key aspects of the Gratuity benefit include:

• Employees who have completed five or more years of continuous service with the company are eligible for gratuity.
• Gratuity is calculated based on the employee's last drawn salary and the total number of years of service.
• The benefit is paid as a lump sum upon retirement, resignation, superannuation, or in the event of death or disablement.
• In certain cases, such as death or disability, the five-year service requirement may be waived.
• The maximum gratuity amount payable is subject to the statutory ceiling as prescribed under the Act.

For full details on the gratuity calculation method, eligibility rules, and payment process, please refer to the India Employee Handbook.