Pay · HR glossary

Gratuity

Gratuity is an employment-related payment that may become due on leaving service under applicable law or contract. In India, statutory eligibility and calculation depend on the governing provisions and employment circumstances.

Example

An employer reviews an employee's service record and applicable wage basis when assessing gratuity at the end of employment.

What to keep in mind

A gratuity provision included in CTC is not necessarily monthly cash pay. Check current eligibility rules and exceptions, including the treatment of fixed-term employment, rather than assuming one service threshold applies to every case.

Put it into practice

Gratuity calculator

Further reading

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