Employment
What is Gratuity? — Meaning, Definition & Example
Definition
Gratuity is a lump sum benefit paid by employers to employees who have completed at least 5 years of continuous service. Under the Payment of Gratuity Act, 1972, the formula is: (Last drawn salary × 15/26) × Years of service. Maximum exempt amount is ₹20 lakh for private sector.
💡 Real Example
If your last drawn salary is ₹60,000 and you've worked for 10 years, your gratuity = (60,000 × 15/26) × 10 = ₹3,46,154.
🇮🇳 Gratuity in Hindi / हिंदी में
ग्रेच्युटी — ग्रेच्युटी नियोक्ता द्वारा कम से कम 5 वर्ष की निरंतर सेवा पूरी करने वाले कर्मचारियों को दिया जाने वाला एकमुश्त लाभ है।
Gratuity (Hinglish) — Gratuity employer dwara employee ko di jaane wali lump sum payment hai jab wo 5 saal ya usse zyada kaam kar chuka ho. Formula: (Last salary × 15/26) × Years of service.
❓ Frequently Asked Questions
What is Gratuity in simple words?
Gratuity is a lump sum benefit paid by employers to employees who have completed at least 5 years of continuous service. Under the Payment of Gratuity Act, 1972, the formula is: (Last drawn salary × 15/26) × Years of service. Maximum exempt amount is ₹20 lakh for private sector.
Can you give an example of Gratuity?
If your last drawn salary is ₹60,000 and you've worked for 10 years, your gratuity = (60,000 × 15/26) × 10 = ₹3,46,154.
What is Gratuity meaning in Hindi?
In Hindi, Gratuity is called ग्रेच्युटी. ग्रेच्युटी नियोक्ता द्वारा कम से कम 5 वर्ष की निरंतर सेवा पूरी करने वाले कर्मचारियों को दिया जाने वाला एकमुश्त लाभ है।