Payment of Gratuity

Payment of Gratuity is the statutory lump sum payable to Indian employees who have completed five years of continuous service, governed by the Payment of Gratuity Act, 1972. Gratuity is calculated as 15 days of last drawn wages per completed year of service, subject to a maximum ceiling, and is payable within 30 days of separation. Employers may opt for gratuity insurance or create a gratuity trust fund.