A gratuity is a one-time payment made by an employer to an employee in recognition of their years of service. It is typically offered to employees who have been employed by the same company for at least five years. Employees rely heavily on gratuity payments for financial security, particularly during their retirement years. However, employees…
Category: Gratuity
Using Gratuity Calculators for Financial Planning: Retirement and Beyond
Introduction: Gratuity is a significant financial benefit that employers provide to their employees as a token of appreciation for their long-term service. It serves as a crucial component of retirement planning and financial security. However, calculating gratuity can be a complex process involving various factors like years of service, last drawn salary, and the gratuity…
Effective Communication of Your Gratuity Policy to Employees
Introduction: Gratuity, also known as a retirement benefit, is an essential aspect of an employee’s financial well-being. It serves as a token of appreciation for their long-term service to the organization. However, many employers struggle with effectively communicating their gratuity policy to employees. In this blog, we will explore strategies to help you communicate your…
Who Is Eligible to Receive Funding From Gratuities? : Guidelines for Tips
Gratuity is a form of monetary benefit that is paid to employees by their employers for services rendered over a period of time. Gratuity rules are governed by the Payment of Gratuity Act, 1972, which applies to organizations that employ 10 or more people. In this blog, we will discuss who is eligible for obtaining…
Employees are exempt from gratuities: What You Need to Know
You have the right to a tip. After five years of continuous employment, you can only get paid. The company is not required to give bonuses to employees who leave or retire. Employers with ten or more employees were required to pay gratuity as a result of a 1972 law. A portion of this gratuity…