HR Glossary
Gratuity
A statutory lump-sum payment made to an employee upon leaving after a minimum period of continuous service.
Definition
Gratuity is a statutory benefit paid to employees in India who have completed at least five years of continuous service, calculated as a lump sum based on last drawn salary and years of service, payable on resignation, retirement, or termination.
Why It Matters
Accurate gratuity calculation and trust management is a compliance requirement, not optional — errors here carry real legal risk.