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Retirement

Gratuity

pronounced: [G-r-a-t-u-i-t-y]

A lump-sum payment made by an employer to an employee as gratitude for at least five years of service, governed by the Payment of Gratuity Act.

It is partially tax-exempt under Section 10(10).

Key Facts

FactValue
Tax BenefitEEE (Exempt-Exempt-Exempt)

Frequently Asked Questions

Related Terms

Leave Encashment
Retirement
Tax Saving

Last updated: 21 May 2026