Gratuity

Gratuity is a payment made by an employer to an employee for the service they provided during their time with the company. It is usually paid out at retirement, but it can be paid earlier if certain conditions are met.

An employee is eligible for gratuity only after completing a minimum of five years of service with an organization. That five-year requirement can be waived in case of the employee’s death or if they become disabled due to an accident or disease.