What is gratuity meaning in salary terms?

[Akira]

I want to understand how gratuity is calculated and when employees become eligible. Is it part of retirement benefits or resignation benefits?

 

[alinajoseph]

Gratuity is a lump-sum amount paid by an employer to an employee as a reward for long-term service. In India, it is usually given when an employee completes at least five years with a company and leaves due to resignation, retirement, or other eligible reasons. The payment is governed by the Payment of Gratuity Act, 1972. Gratuity is calculated based on the employee’s last drawn salary and years of service. It acts as a financial benefit and retirement support for employees.

 

[Watson]

In salary terms, gratuity is a lump-sum amount paid by an employer to an employee as a thank-you benefit for long-term service. It is usually given when an employee resigns, retires, or leaves the company after completing a minimum period of service.

 

[robin]

Gratuity is a lump-sum payment employers give employees as appreciation for long-term service, usually after resignation, retirement, or termination, based on salary and years worked under company or labor laws.

 

[Sanji]

Gratuity is a lump-sum financial benefit paid by an employer to an employee for long-term service. It serves as a reward for loyalty and is typically disbursed when an employee retires, resigns (after at least 5 years), or in the event of unfortunate circumstances like death or disability.

 

[ziva]

Gratuity is a lump-sum payment given by an employer to an employee as a reward for long-term service, usually when the employee resigns, retires, or leaves the company after completing a minimum required period of work.