Gratuity is a loyalty reward that organisations give their employees for the services rendered for the organisation. Gratuity is payable to an employee when an employee leaves employment after completing at least five years in service with an employer and is payable in the following circumstances:
On superannuation (means an employee who attains the age of retirement is said to be in superannuation)
On retirement or resignation
On death or disablement due to accident or disease (the time limit of 5 years shall not apply in the case of death or disablement of the employee)
Taxation of gratuity amount varies from case to case but for a government employee, there is no tax on the gratuity amount.
Gratuity is a loyalty reward that organisations give their employees for the services rendered for the organisation. Gratuity is payable to an employee when an employee leaves employment after completing at least five years in service with an employer and is payable in the following circumstances:
On superannuation (means an employee who attains the age of retirement is said to be in superannuation)
On retirement or resignation
On death or disablement due to accident or disease (the time limit of 5 years shall not apply in the case of death or disablement of the employee)
Taxation of gratuity amount varies from case to case but for a government employee, there is no tax on the gratuity amount.