Gratuity Act

The Payment of Gratuity Act, 1972 mandates employers to pay a lump sum gratuity to employees who have rendered at least five years of continuous service, calculated at 15 days of wages per completed year. In India, gratuity is payable upon superannuation, retirement, resignation, death, or disablement, with a maximum ceiling set by the government. All establishments employing ten or more persons must comply.