Gratuity is a lump sum amount paid by the employer to the employee as a token of appreciation for the services they have provided towards the company. It is important to know what are the eligibility and the amount of gratuity that an employee will receive.
Gratuity is the monetary amount which is payable to the employee of an organisation under the Payment of Gratuity Act 1972. This is mainly paid to the employee as a token of appreciation for his/her services towards the company. Gratuity payment is one of the several components that make up the gross salary of the employee. However, an employee is eligible to receive the gratuity amount only after they complete a period of 5 or more years with the company. It is generally a token amount paid by the company showing gratitude towards the employee for their services towards the organisation.
Here is the list to check if an employee is eligible to receive the gratuity amount from the employer or not: