The Payment of Gratuity Act,1972

The Payment of Gratuity Act,1972

An act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines,oilfields, ports, plantations, shops or other establishments and for matters connected therewith or incidental thereto.


Gratuity is paid when an employee reaches Superannuation, Retires, or Resigns after completion of 5 years of continuous service. In case of death of an employee or disablemen due to accident or illness, continuous service of 5 years is not necessary to consider for gratuity payment.


  • Every factory, mine, oilfield, plantation, port and railway company
  • Every shop or establishment with in the meaning of any law for the time being in force in relation to shops and establishments in a state, in which 10 or more persons are employed, or were employed, or any day of the preceding 12 months;
  • Such other establishments or class of establishments, in which 10 or more employees are employed, on any day of the preceding 12 months, as the central government may, by notification, specify on this behalf


Bare Act

Payment of Gratuity Rules

Amendment, 2009

Amendment, 2010

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