Gratuity Questions: How Do New and Experienced Employees Navigate the Rules?

Dear HRs, For gratuity, it is applicable once the employee completes 5 years of continuous service with the organization.

Gratuity Calculation for Experienced Employees
1] For someone who has 10 years of experience and received gratuity benefits in the last organization but has now left and joined a new organization, will the new firm consider the last 10 years of service, or will they calculate gratuity only when the employee completes 5 years in the new organization?

Gratuity for Freshers
2] For a fresher who has joined the organization, do we have to add gratuity to the salary breakup?

Kindly provide me with your valuable inputs. Thanks in advance.

Gratuity is payable once an employee leaves your organization after completing five years of service. It is very common nowadays to add the gratuity as part of the cost to the company, but I don't recommend it. It is only a manipulation of salary. If it is wrongly interpreted as his earning, obviously, you will be in trouble in the future. Therefore, avoid such a component.