What is Gratuity Benefit Amount and when does it get paid?
Gratuity refers to an amount of money which an employer pays to his employee in return for services offered by him to the company. However, only those employees who have been employed in the company for five years or more than five years are given gratuity. You may perceive gratuity like gratitude expressed by the company towards their employees for their services. It is governed by the Payment of Gratuity Act 1972.
It is payable…
On Superannuation (or) Retirement.
On your Resignation (or) Termination.
On death or Disablement due to accident or disease.
On Retrenchment (or) Layoff.
VRS (Voluntary Retirement Scheme)