Gratuity is an important financial benefit provided by the government to recognize employees for their long-term service. Governed by the Payment of Gratuity Act, 1972, it is a monetary reward given when an employee retires or resigns, provided they meet certain eligibility criteria.
Gratuity is not always paid directly by the employer. In some cases, organisations use group insurance schemes through insurance companies to manage gratuity payments. This approach offers extra security, especially for larger companies where gratuity amounts can be significant.
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