InvestorQ : Under what circumstances can an individual expect to receive gratuity?
Ashok Patkar made post

Under what circumstances can an individual expect to receive gratuity?

Answer
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Abhi Yadav answered.
1 year ago


Gratuity is the part of salary that an employer pays to an employee, at the time of the employee leaving his/her job, for the services that the employee has put in the company. It is like a reward for the employee’s loyalty.

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)

Please note, gratuity is not paid as part of an employee’s regular monthly salary and it is only payable on the occurrence of any of the above events.