Gratuity is a benefit that is payable under the Payment of Gratuity Act 1972. Gratuity is a lump sum amount paid by the employer to the employee for the services rendered by them during the period of employment for five or more years with the company. It is a token of appreciation for the services they have provided towards the company. However, Gratuity is paid only to employees who complete five or more years with the company.
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