Bajaj Finserv
|

Bajaj Finance Limited

|
Sign In
EMI Card
Notifications
Notifications
Cart
Partners
  • Fixed Deposit (IFA) Partner Fixed Deposit (IFA) Partner
  • Loan (DSA) Partner Loan (DSA) Partner
  • Debt Management Partner Debt Management Partner
  • EMI Network Partner EMI Network Partner
  • Become a Merchant Become a Merchant
  • Partners Sign In Partners Sign In
Menu
  • Loans
  • All on EMI
  • Bajaj Mall
  • Card
  • Investments
  • Insurance
  • Payments
  • Offers
  • Services
  • About Bajaj Finserv
  • Pay EMI Pay EMI
  • Do not call Do not call
  • Download the app Download the app
  • Home
  • Account
  • More
  • Pay EMIs
  • Menu
  • Process to claim gratuity
  • Rules to adhere
  • Eligibility to claim gratuity
  • Rules & regulations
  • Conclusion

How to Claim Gratuity After Resigning

Claim gratuity, eligible employees must submit a written application to their employer within 30 days days of the date the gratuity becomes payable

FDs offer a stable way to grow your wealth alongside EPF

Gratuity is a vital financial benefit that the government provides as a token of appreciation for employees who have provided long-term service to an organisation. Governed by the 1972 Payment of Gratuity Act, it is a monetary reward given to employees when they retire or resign, given that they meet certain criteria.

Gratuity is not solely paid by the employer in all cases. Some organisations work with insurance companies, ensuring that gratuity payments are managed through group insurance schemes. This offers added security for employees, especially in larger companies where gratuity payouts are substantial.

If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure.

Key takeaways

  • Submit Form I to formally initiate your gratuity claim after your resignation.
  • Employers must acknowledge receipt and calculate gratuity based on salary and service.
  • Gratuity must be disbursed within 30 days; delays may incur interest payments.
  • Valid reasons for delayed gratuity applications prevent employers from rejecting claims.

How to claim gratuity after resignation

Claiming gratuity is a simple process. But you need to handle it correctly to ensure timely disbursement. Here is a step-by-step guide that will explain to you how to claim gratuity after you retire:

  1. Start the claim: To start the process, you have to submit a formal application using Form I (if you are eligible for gratuity). If you cannot do this personally, your nominee or a legal heir can submit the form on your behalf.
  2. Employer’s acknowledgement: Once the employer receives your gratuity application, they will have to acknowledge it and calculate the gratuity payable to you.
  3. Gratuity calculation: The calculation will be based on your last drawn salary and years of service. The calculation formula is explained below. The calculation must comply with the provisions of the Gratuity Act.
  4. Disbursement of gratuity: After the calculation, the employer will have to disburse the gratuity in 30 days. If there is a delay, an interest could be added to your gratuity amount from the due date until they make the payment.

By following these steps, you can ensure that your gratuity is processed efficiently.

Rules to claim gratuity after resignation

Several rules apply to the process of claiming gratuity. These rules ensure fairness for both employers and employees. Some of these rules are:

  • Gratuity claim period: Employees must apply for gratuity within 30 days of becoming eligible. However, if you provide a valid reason for the delay, your employer cannot reject the application because of late submission.
  • Employer responsibility: Once you submit the claim, the employer should respond promptly and initiate the payment process after calculation. Failure to adhere to the prescribed timelines may lead to penalties for them.
  • Insurance-backed gratuity: In certain cases, employers work with insurers to pay gratuity. In such cases, insurance companies will handle the payout according to the applicable clauses.

Eligibility to claim gratuity after resignation

Not every employee is automatically eligible to claim gratuity. The following conditions must be met to qualify you for gratuity:

  1. Minimum years of service: You must have completed a minimum of five years of service continuously with a company or organisation. But in cases of death or permanent disability, this condition does not apply.
  2. Retirement or resignation: Gratuity is generally payable at the time of retirement or voluntary resignation. The five-year service rule must be satisfied, however.
  3. Retirement fund eligibility: To receive the gratuity, you should be eligible to receive a retirement fund.
  4. Special circumstances: If an employee dies during their service or is incapacitated due to some kind of illness or injury, the gratuity is payable to the nominee or a legal heir, and the five-year requirement does not apply.

These criteria are a way to ensure that only those who have committed to long-term service can benefit from the provision.

Grow your money with FD

Important rules and regulations of gratuity

Many other rules and regulations also apply to the payment and amount of gratuity. Some of the main ones include:

  • Gratuity amount cap: The maximum gratuity payable under the Gratuity Act is Rs. 10 lakh. Any amount over this limit might be offered as ex-gratia, but it is not legally mandatory.
  • Rounding of service years: Employment duration is rounded to the nearest year when gratuity is calculated. For example, if you have worked for six years and eight months, you are considered to have completed seven years. But, if the employment duration is six years and four months, it will be rounded down to six years.
  • Gratuity calculation formula: The basic formula for calculating gratuity is:

Gratuity= ((Last Salary Drawn×15​)/26) ×Years of Service
The last drawn salary includes your basic pay and dearness allowance, if it was applicable.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 7.30% p.a.

Conclusion

Gratuity is a key benefit that serves as financial security for you after you resign or retire. The process of claiming gratuity is straightforward, but understanding the rules, eligibility criteria, and calculation methods is essential to ensure that everything goes smoothly. Employees must apply promptly and provide the necessary documentation to avoid delays in payment.

By knowing how to claim gratuity after resigning and staying informed about the regulations, you can safeguard your rights and secure your gratuity payments in a timely fashion.

Investment Calculators

FD Calculator image

FD Calculator

Systematic Investment Plan Calculator image

Systematic Investment Plan Calculator

Gratuity Calculator image

Gratuity Calculator

MF Calculator image

MF Calculator

Lumpsum Calculator   image

Lumpsum Calculator

Employee Provident Fund Calculator image

Employee Provident Fund Calculator

Sukanya Samriddhi Yojana Calculator image

Sukanya Samriddhi Yojana Calculator

PPF Calculator image

PPF Calculator

Recurring Deposit Calculator image

Recurring Deposit Calculator

Show More Show Less

Frequently asked questions

How to claim gratuity money?

Submit Form I (gratuity application) to your employer. They must acknowledge receipt, calculate your gratuity using your last drawn salary and service period, and pay within 30 days—or else owe interest.

When can I apply for gratuity after resignation?

You can apply immediately after your employment ends—typically upon resignation or retirement—and must do so within 30 days of becoming eligible.

What is the qualifying service to claim gratuity?

Standard eligibility requires five years of continuous service. However, if in your fifth year you’ve worked at least 240 days (for a six-day working week), that counts as a full year. Exceptions apply for death or disability.

How to claim gratuity in a private company?

Submit Form I to your employer with proof of service and last drawn salary. Employer then calculates and must pay gratuity within 30 days. If delayed, interest applies.

What is the time limit for claiming gratuity?

Gratuity must be claimed within 30 days of becoming eligible. Employers should pay it in that timeframe; otherwise, they owe simple interest on the delayed amount.

How is gratuity deducted from salary?

There’s no deduction from your salary. Gratuity is an employer-paid benefit, calculated as:
(Last drawn salary × 15/26) × years of service, subject to statutory caps.

Show More Show Less

Related articles

what-is-financial-planning 1

Financial Planning

Read More

manage-nominee-details-for-my-fd 2

Plan Your Dream Retirement Today with Smart Investment Strategies

Read More

Article 3

Is It a Good Idea to Invest Gratuity Funds in an FD (Fixed Deposit)

Read More

Related videos

Long-term verses short-term deposits
 
 

Long-term verses short-term deposits

Achieve your financial goals with Fixed Deposit
 
 

Achieve your financial goals with Fixed Deposit

Four ways to make the most of your Fixed Deposit
 
 

Four ways to make the most of your Fixed Deposit

How Fixed Deposits support financial independence
 
 

How Fixed Deposits support financial independence

You are here

  1. Home
  2. Investments
  3. Claim gratuity after resignation

Related Links

  • Best investment plan with high returns
  • Short term investment plans with high returns

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.

 Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators.
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Download app image

Download App

Now request money from your friends and family and make instant payments.

Download App
  • 1.  Apply for Loans: Choose from personal, business, gold loans and more
  • 2. Transact: Pay utility bills, use UPI, get FASTag and more
  • 3. Shop: Buy over 1 million products on No Cost EMI
  • 4. Invest: Buy stocks, mutual funds and invest in FD

Go To Top

Application Forms

  • Personal Loan
  • Business Loan
  • Home Loan
  • Gold Loan
  • Insta EMI Card
  • Wallet Care
  • Health Insurance
  • Loan for Doctors
  • Fixed Deposit
  • Loan Against Property
  • Loan for Chartered Accountants
  • Open Demat Account
  • Two-wheeler Loan
  • New Car Finance
  • Used Car Loan
  • Loan Against Car
  • Car Loan Balance Transfer and Top-up
  • Mutual Fund
  • Secured Business Loan
  • Loan for Lawyer

Products Portfolio

Loans

  • Personal Loan
  • Insta Personal Loan
  • Business Loan
  • Home Loan
  • Gold Loan
  • MSME Loan
  • Mortgage Loan
  • Loan Against Property
  • Two & Three Wheeler Loan
  • Education Loan on Property
  • Personal Loan for Self-employed Individuals
  • Two-wheeler Loan
  • New Car Finance
  • Used Car Loan
  • Loan Against Car
  • Car Loan Balance Transfer and Top-up
  • Used Cars and Loan

Insurance

  • Insurance
  • Health Insurance
  • Life insurance
  • Term Insurance
  • ULIP Plans
  • Car Insurance
  • Pocket Insurance
  • Investment Plans
  • Appliances Extended Warranty
  • Pocket Subscription

Finance for Professionals

  • Loan for Doctors
  • Loan for Chartered Accountants

Investments

  • Fixed Deposit
  • Open Demat Account
  • Mutual Funds
  • NFO (New Fund Offer)
  • ELSS Mutual Funds
  • Equity Mutual Funds
  • Hybrid Mutual Funds
  • Debt Mutual Funds
  • Multi Cap Mutual Funds
  • Large Cap Mutual Funds
  • Mid Cap Mutual Funds
  • Small Cap Mutual Funds
  • Liquid Mutual Funds
  • Aggressive Hybrid Mutual Funds

Pocket Subscription

  • Mobile Protection Plan
  • Wallet Care
  • Fonesafe Lite
  • Neuro Care Plan
  • Health Prime Max
  • Cpp Road Assist
  • Healthy Body Package

Bajaj Mall

  • Smartphones
  • Mattress
  • Smartwatches
  • Cycles
  • Music & Audio
  • Speakers
  • Water Purifiers
  • Laptops
  • Two-wheeler
  • Washing Machine
  • Televisions
  • Air Conditioner
  • Refrigerators
  • Furniture

Services

  • Sign-in to our Customer Portal (My Account)
  • Manage your Profile
  • Manage your Mandate
  • Manage your Loans
  • Manage your Flexi Loans
  • Manage your Insta EMI card
  • Manage your Fixed Deposit

Wallets & Cards

  • Wallet
  • Bajaj Finserv Insta EMI Card

Value Added Services

  • Credit Pass
  • Gold Rate

Payments

  • All Payments
  • Wallet
  • UPI
  • Mobile recharge
  • Electricity Bill Payment
  • DTH Recharge
  • Loan Repayment
  • Gas Booking
  • Rewards
  • Bajaj Pay FASTAg
  • Bajaj Pay Wallet KYC Upgrade
  • Bajaj Pay FASTAg Registration
  • Bajaj Pay FASTag Replacement
  • Bajaj Pay FASTag Closure
Pre-approved Offers
Offer World
Article and Insights

Calculators

  • Personal Loan EMI Calculator
  • Home Loan EMI Calculator
  • Home Loan Eligibility Calculator
  • Business Loan EMI Calculator
  • Personal Loan Eligibility Calculator
  • Loan Against Property EMI Calculator
  • Education Loan on Property Calculator
  • FD Calculator
  • Gratuity Calculator
  • Income Tax Calculator
  • Top-up Loan Calculator
  • Part-prepayment Calculator
  • GST Calculator
  • Gold Loan Calculator
  • EMI Calculator
  • Used Car Loan EMI Calculator
  • Interest Calculator
  • SIP Calculator
  • Credit Score Simulator
  • Flexi Day Wise Interest Calculator
  • Flexi Transaction Calculator
  • Secured Business Loan EMI Calculator
  • Secured Business Loan Eligibility Calculator
  • Lumpsum Calculator
  • Step Up SIP Calculator
  • BMI Calculator
  • IDV Calculator
  • Commercial Loan EMI Calculator
  • Medical Equipment Finance EMI Calculator
  • Term Loan Calculator
  • Equipment Machinery Loan EMI Calculator
  • Doctor Loan EMI Calculator
  • Doctor Loan Eligibility Calculator
  • Chartered Accountant Loan EMI Calculator
  • Simple Interest Calculator
  • Compound Interest Calculator
  • Brokerage Calculator
  • Mutual Fund Calculator
  • Two wheeler Loan EMI Calculator
  • New Car Loan EMI Calculator

Legal

  • Moratorium Policy (Covid-19)
  • Moratorium Policy March 2020
  • Information Security Practices
  • Information Security Measures
  • Citizens Charter
  • Privacy Policy
  • Phishing
  • Disclaimer
  • Forms Centre
  • Fees & Charges
  • Fair Practices Code
  • Interest Rate Policy
  • Disclosures
  • Cautionary Notice
  • Whistle Blower Policy
  • Confidential Feedback
  • Resolution Plan 2.0
  • Terms & Conditions
  • Resolution Plan 2.0 FAQs
  • Ombudsman Scheme
  • SMA/NPA Account Classification
  • Terms of Use
  • Sachet
  • Handover of Property Documents
  • Notices
  • Policy on Fees & Charges
  • BFL - Floating Reference Rates

Reach Us

  • Contact us
  • Raise A Request
  • Frequently Asked Questions
  • Make Online Payment
  • Branch Locator
  • Our Partners
  • Galaxy - Partner portal
  • Bajaj Finserv for Business
  • Call Us

Corporate Office

6th Floor Bajaj Finserv Corporate Office, Off Pune-Ahmednagar Road, Viman Nagar, Pune - 411014

Bajaj Finance Limited Regd. Office

Akurdi, Pune - 411035
Ph No.: 020 7157-6403
Email ID: investor.service@bajajfinserv.in

Corporate Identity Number (CIN)

L65910MH1987PLC042961

IRDAI Corporate Agency (Composite) Regn No.

CA0101
(Valid till 31-Mar-2028)

URN - WEB/BFL/23-24/1/V1

Bajaj Finserv Limited Regd. Office

Bajaj Auto Limited Complex Mumbai - Pune Road,
Pune - 411035 MH (IN)
Ph No.: 020 7157-6064
Email ID: investors@bajajfinserv.in

Corporate Identity Number (CIN)

L65923PN2007PLC130075

Our Companies

  • Bajaj Finserv Ltd.
  • Bajaj Finance Ltd.
  • Bajaj Allianz General Insurance
  • Bajaj Allianz Life Insurance
  • Bajaj Markets
  • Bajaj Housing Finance Ltd.
  • Bajaj Broking
  • Bajaj Finserv Health Ltd.
  • Bajaj Finserv Asset Management Ltd.
Company Name
Download App

© Bajaj Finserv 2007-2025. All rights reserved.