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Gratuity is a payment made to an employee on exit after a qualifying period of continuous service, governed by the Payment of Gratuity Act 1972 for covered establishments.
The formula, the qualifying period, the wage components counted and any statutory ceiling are all set by law and have been amended over time. Take the current position from your advisers.
Two things: continuous service, and the wage used in the calculation. Both are historical questions, and both are answered from records that were created years earlier.
That is why the personnel record's dated history matters here more than almost anywhere else. A joining date and a salary history are the evidence.
Set by statute, with judicial interpretation on continuity. Confirm the current position with your advisers.
Defined in law rather than by policy. It is not a choice about how you structure salary.
It holds the service and salary history the calculation needs. Treat the figure as one to verify, not to accept.
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