A gratuity is a lump sum financial payout given by an employer to an employee as a token of appreciation for their long-term and continuous service. However, not every employee is eligible to get gratuity. Only employees who have completed certain years of continuous service are eligible to receive gratuity from their employers.
The gratuity amount is based on an employee’s last-drawn wages from an employer, length of service and eligibility under the Code on Social Security, 2020.
