Gratuity Rules for Companies with 10+ Employees: Can Salary Structures Be Customized?

Gratuity Requirement for Companies

Is gratuity mandatory for a company with more than 10 employees? If not, can organizations customize the salary structure on a need basis? Seeking expert advice.

Please clarify the nature of the company: is it running a factory or an establishment? As a general rule, the Payment of Gratuity Act (PGA) applies to all entities with an employee strength of ten or more.

Applicability of the Payment of Gratuity Act 1972

The Payment of Gratuity Act 1972 becomes applicable when the employer employs 10 or more employees, irrespective of its nature, i.e., whether a factory or commercial establishment.

Clarification Needed

Your second query is not understood. Please elaborate.

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