Gratuity is a voluntary payment given by company for continuous meritorious service at

• • • • • • • • • • Configure it as per your business • Auto process your payroll • Manage employee life-cycle • Help your team acheive goals • Real time leave & attendance • Make your employees feel valued • Conversational ticketing solution • Manage your Employee Expenses • Faster and better hiring made possible • Keep a tab on your company assets • • Stay on top of HR tasks, always • Empower your Employees • Be in sync with your team • Get Actionable insights • • • • • • • • • • • • • • • • • For a novice, a gratuity is – “a gift of money, which is paid over and above salary due for long service”. In case of employment, it is a kind of benefit and is similar to a bonus. This means that it is a portion of your salary given by your employer, for a long service rendered towards the growth of the company. The We bring to you the top Frequently Asked Questions on gratuity and its operation. Who is eligible for gratuity? An employee who has completed five years of continuous service in the same organization is eligible to receive gratuity. The employee will get the gratuity on the termination of the employment after rendering continuous service for not less than five years. When do you get the gratuity? Well, it is payable on… • Retirement • Resignation or termination • Death or disablement due to accident or disease • Retrenchment or layoff • Voluntary Retirement Scheme (VRS) Tip: Check your ‘Full and Final Settlement’ papers to know whether you have received the gratuity am...

Gratuity is a voluntary payment made by an employer to employee as an appreciation of service rendered by such employee. In general words, gratuity is large amount of gift that is given to an employee by employer on retirement of employee after serving the organisation for a specified period. Unlike provident funds, Gratuity is entirely paid by employer without the contribution from employee. Gratuity is payable by each organisation, whether government or not, which have MORE THAN 10 employees. However, an organisation having 10 or lesser employees may also provide gratuity to its employees but it is not mandatory for such organisations. Amount so received as gratuity is taxable under Income Tax Act,1961. However, exemption is also provided in certain cases. Eligibility Criteria for Payment of Gratuity • Employee must be eligible for superannuation fund. • Employee should retire from service. • Employee at least serves an organisation for a continuous period of 5 years. *In case of death of employee, his nominee would be eligible for receiving gratuity on behalf of such employee. Taxability of Gratuity Entire amount received as gratuity is taxable as per Income Tax Act,1961. Exemption under Gratuity 1. If Gratuity is received during the period of employment then NO exemption will be provided to any employee whether employee of government firm or others. 2. If Gratuity is provided after retirement to the employees of any government firm then it is FULLY EXEMPT for tax purpo...

Employees play a key role in the growth of any business. In recognition of an employee’s meritorious service to a company, certain benefits may accrue subject to such benefits being provided for under the employees’ condition for service. Gratuity is one of such payments. Payment of gratuity is one of the means to appreciate the service of an employee who has spent the number of years stipulated in their conditions of service. This piece seeks to discuss some aspects of the right of an employee to gratuity under relevant subtopics. Dispute usually arises between employer and employee upon disengagement of the latter over whether gratuity is due, what mode of calculation to adopt, how much is the total amount due and whether the employer has the right or power to withhold the payment for any reason connected to misconduct or mode of disengagement of the employee. In this piece, we have raised and answered the following common questions which will help readers to understand some of the underlying issues in the claim for gratuity. WHAT IS GRATUITY? Gratuity is a lump sum benefit provided by an employer as a form of reward to an employee upon retirement, termination, resignation, superannuation or death. It is a sum paid for an employee’s meritorious service to an organisation. Gratuity serves as an instrument of social security to such employees or their beneficiaries in the event of any of the aforementioned eventualities. Please note that gratuity is not a privilege rather ...

Gratuity is a voluntary payment made by an employer to employee as an appreciation of service rendered by such employee. In general words, gratuity is large amount of gift that is given to an employee by employer on retirement of employee after serving the organisation for a specified period. Unlike provident funds, Gratuity is entirely paid by employer without the contribution from employee. Gratuity is payable by each organisation, whether government or not, which have MORE THAN 10 employees. However, an organisation having 10 or lesser employees may also provide gratuity to its employees but it is not mandatory for such organisations. Amount so received as gratuity is taxable under Income Tax Act,1961. However, exemption is also provided in certain cases. Eligibility Criteria for Payment of Gratuity • Employee must be eligible for superannuation fund. • Employee should retire from service. • Employee at least serves an organisation for a continuous period of 5 years. *In case of death of employee, his nominee would be eligible for receiving gratuity on behalf of such employee. Taxability of Gratuity Entire amount received as gratuity is taxable as per Income Tax Act,1961. Exemption under Gratuity 1. If Gratuity is received during the period of employment then NO exemption will be provided to any employee whether employee of government firm or others. 2. If Gratuity is provided after retirement to the employees of any government firm then it is FULLY EXEMPT for tax purpo...

Employees play a key role in the growth of any business. In recognition of an employee’s meritorious service to a company, certain benefits may accrue subject to such benefits being provided for under the employees’ condition for service. Gratuity is one of such payments. Payment of gratuity is one of the means to appreciate the service of an employee who has spent the number of years stipulated in their conditions of service. This piece seeks to discuss some aspects of the right of an employee to gratuity under relevant subtopics. Dispute usually arises between employer and employee upon disengagement of the latter over whether gratuity is due, what mode of calculation to adopt, how much is the total amount due and whether the employer has the right or power to withhold the payment for any reason connected to misconduct or mode of disengagement of the employee. In this piece, we have raised and answered the following common questions which will help readers to understand some of the underlying issues in the claim for gratuity. WHAT IS GRATUITY? Gratuity is a lump sum benefit provided by an employer as a form of reward to an employee upon retirement, termination, resignation, superannuation or death. It is a sum paid for an employee’s meritorious service to an organisation. Gratuity serves as an instrument of social security to such employees or their beneficiaries in the event of any of the aforementioned eventualities. Please note that gratuity is not a privilege rather ...

• • • • • • • • • • Configure it as per your business • Auto process your payroll • Manage employee life-cycle • Help your team acheive goals • Real time leave & attendance • Make your employees feel valued • Conversational ticketing solution • Manage your Employee Expenses • Faster and better hiring made possible • Keep a tab on your company assets • • Stay on top of HR tasks, always • Empower your Employees • Be in sync with your team • Get Actionable insights • • • • • • • • • • • • • • • • • For a novice, a gratuity is – “a gift of money, which is paid over and above salary due for long service”. In case of employment, it is a kind of benefit and is similar to a bonus. This means that it is a portion of your salary given by your employer, for a long service rendered towards the growth of the company. The We bring to you the top Frequently Asked Questions on gratuity and its operation. Who is eligible for gratuity? An employee who has completed five years of continuous service in the same organization is eligible to receive gratuity. The employee will get the gratuity on the termination of the employment after rendering continuous service for not less than five years. When do you get the gratuity? Well, it is payable on… • Retirement • Resignation or termination • Death or disablement due to accident or disease • Retrenchment or layoff • Voluntary Retirement Scheme (VRS) Tip: Check your ‘Full and Final Settlement’ papers to know whether you have received the gratuity am...