Gratuity Rules under Payment of Gratuity Act, 1972
Gratuity is a monetary benefit paid by employers to employees in recognition of continuous service for 5 or more years. The government provides a lifetime tax exemption of up to ₹20 Lakhs.
Frequently Asked Questions (FAQs)
What is the formula for gratuity calculation in India?
For employees covered under the Act: Gratuity = (15 × Last Drawn Basic Salary + DA × Completed Years of Service) / 26.
