Gratuity
Applicability: The Payment of Gratuity Act casts its shadow over organizations with ten or more employees, endowing employees with a lump-sum payment as a token of gratitude upon retirement or in the unfortunate event of death or disability. Contribution: Employers are tasked with earmarking funds for gratuity, and employees are not required to make direct contributions to this fund.
Benefits
For Employees: This act provides employees with financial security in the form of a lump-sum payment, typically equivalent to 15 days of their last drawn salary for each completed year of service. For Employers: It underscores the commitment of employers to employees who have served them faithfully and serves as a potent incentive for employee retention.
