Payment of Gratuity Act — high-level employer checklist

Gratuity is a statutory terminal benefit in many covered establishments. Eligibility, formula components, and ceilings depend on the Act, applicable wage definitions, and judicial interpretations over time.

Readers should treat numbers and thresholds as subject to change and verification.

Teams often ask whether broken service breaks eligibility, how contractors differ from direct employees for statutory benefits, and how to document wages for calculation.

These questions are fact-specific. Internal HR policy should be reviewed with qualified professionals.

Verify definitions, notifications, and forms on official government sources and your state labour authorities.