Understanding Gratuity in Payslips: How Does the Gratuity Provision Act of 1972 Apply?

Eswar1978
Gratuity in Payslips

How many companies include gratuity in their payslip? What does the Gratuity Provision Act of 1972 say? Could someone please explain it?

Components of a Salary Slip

What are the applicable components that can be included in the salary slip?

Thanks,

Prasad
v.harikrishnan
Gratuity is not considered wages; therefore, it does not need to be included in the payslip. The Payment of Gratuity Act does not mandate the employer to indicate gratuity in the payslip. "Gratuity" is a potential benefit, meaning that the employee acquires the right to its payment, and the employer becomes liable to pay gratuity only if the conditions specified in the PG Act are met. Hence, there is no requirement to mention it in the payslip.

Regards
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