Gratuity as a Retirement Benefit
Gratuity is an important retirement benefit for employees in the Indian context, relevant for all organizations, whether MNCs, schools, or other businesses, having more than 10 employees. Employees sacrifice the prime time of their lives for the development, prosperity, and betterment of the employer. The employer is bound to pay employee gratuity as a gesture of graciousness or gift when the employee no longer serves. Gratuity is a statutory obligation on the shoulders of the employer to make the payment of gratuity to employees as soon as it becomes payable. These benefits are necessary to ensure employees get financial security upon exiting the job.
Payment of Gratuity Act 1972
The Payment of Gratuity Act 1972 governed gratuity to employees, and now the new code has subsumed this law.
From India, Pune
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3180Gratuity is an important retirement benefit for employees in the Indian context, relevant for all organizations, whether MNCs, schools, or other businesses, having more than 10 employees. Employees sacrifice the prime time of their lives for the development, prosperity, and betterment of the employer. The employer is bound to pay employee gratuity as a gesture of graciousness or gift when the employee no longer serves. Gratuity is a statutory obligation on the shoulders of the employer to make the payment of gratuity to employees as soon as it becomes payable. These benefits are necessary to ensure employees get financial security upon exiting the job.
Payment of Gratuity Act 1972
The Payment of Gratuity Act 1972 governed gratuity to employees, and now the new code has subsumed this law.
From India, Pune
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Code on Social Security 2020.pdf