The Payment Of Gratuity Act, 1972

This practical guide to the Payment of Gratuity Act, 1972 converts statutory provisions into step-by-step payroll and compliance procedures for employers, HR and payroll professionals, auditors and labour lawyers. The book opens with scope and coverage (establishments and eligible employees), then explains the statutory calculation (15 days’ last drawn salary × years of service or proportionate formula), qualifying period, and gratuity payable on resignation, retirement or death. It addresses forfeit/forfeiture rules (misconduct, conviction), the ceiling on gratuity and notable amendments, and the tax treatment of gratuity receipts. Detailed chapters walk through the claim process — time limits, application forms, proof requirements and adjudication by the controlling authority or civil courts — plus remedies for non-payment, interest computation for delayed disbursal, and employer defenses. Practical appendices include worked numerical examples across typical scenarios (partial year, variable salary components, death-in-service), an editable gratuity-calculation spreadsheet, sample employee notices, board resolutions, a gratuity register template and a one-page compliance checklist for audits. With a focus on reducing calculation errors and litigation risk, the guide equips practitioners to manage gratuity obligations efficiently and transparently.