Employee money guide

What Is Gratuity?

Learn what gratuity means, when employees become eligible, and why it matters in retirement and job-change planning.

Direct Answer

Gratuity is a statutory benefit paid by eligible employers to employees who complete the required continuous service period, subject to applicable rules.

Key Takeaways

Gratuity is linked to tenure.
It can matter during job changes and retirement.
Eligibility and tax treatment depend on applicable rules.

Why gratuity matters

For long-tenure employees, gratuity can become an important part of retirement and job-change planning.

What employees should check

Understand eligibility, service period, calculation basis, nomination, and tax treatment before relying on gratuity in plans.

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FAQs

Do all employees get gratuity?

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Eligibility depends on employer coverage, tenure, and applicable gratuity rules.

Reviewed by the Saventh Financial Literacy Team. Educational information for Indian employees — not personalised advice. Mutual fund investments are subject to market risk. Saventh AMFI ARN 324457.

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