Payment of Gratuity Act · 4
Gratuity Payment
Understanding the issue
If you work for 5 or more years in a company, you are entitled to gratuity when you leave. Calculation: 15 days' wages for every completed year of service.
Punishment
Employer must pay gratuity within 30 days of it becoming payable
Examples
- A worked in a company for 8 years. On resignation, A is entitled to gratuity = (15 × last drawn salary × 8) / 26.