HR & Payroll
Gratuity
Lump sum payable by employer to employees on retirement, resignation (after 5 years) or death — governed by the Payment of Gratuity Act, 1972.
What it means
Formula: (15 × last drawn basic + DA × completed years of service) / 26. Maximum tax-exempt gratuity is ₹20 lakh as of 2026. Eligibility requires 5 years of continuous service (relaxed in case of death or disability). Applicable to establishments with 10+ employees.
How Easedesk handles Gratuity
Easedesk maintains gratuity provision in payroll, computes the accrued liability for accounting and triggers payout calculations on separation.
Related terms
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