Employees Pension Scheme Calculator

What is Gratuity?

Gratuity is a lump sum money that a company pays to its employee when he/she leaves the organization after completing five years in it. However, these five years must be continuous and there should not be any gap in the services of the employee with that organization. In this way, gratuity works as a retirement benefit that an employee receives after working for at least five years in a row with a company. According to the Payment of Gratuity Act, 1972, there is a set of certain requirements and rules that are associated with Indian gratuity system.

Who are eligible for gratuity ?

According to the Payment of Gratuity Act, 1972 any person who covered under Gratuity Act, 1972 and completed 4 years and 240 days of continues service are eligible for gratuity.

Special cases company might consider gratuity for an employee who did not complete 5 years ?

• Employment termination
• Death of an employee
• Permanent disability of an employee