Gratuity meaning: What is Gratuity

What is Gratuity ? Gratuity , often referred to as a gratuity payment or gratuity benefit, is a form of monetary reward or compensation provided by employers to employees as a token of appreciation for their service and dedication. Unlike regular salary or wages, gratuity is typically paid as a lump sum amount upon the completion of a certain period of service, such as retirement, resignation, or termination. The primary purpose of gratuity is to acknowledge and reward employees for their long ... Know what gratuity means, eligibility, rules under Gratuity Act 1972, and how to fill Form F. Everything about gratuity in India. Gratuity is a significant financial benefit that employees receive from their employers as a gesture of appreciation for their long-term service. Traditionally seen as a retirement benefit, gratuity has now taken on a more structured and inclusive role with the introduction of the Code on Social Security, 2020. These new gratuity rules aim to expand the scope of coverage, improve clarity, and ensure that all categories of workers—whether permanent, fixed-term, or even gig workers—receive ... Gratuity is the amount employees receive as a part of their gross compensation from their employer. Learn about its eligibility criteria, calculation formulas, and taxation rules in India with examples and a free online calculator.