The amount of gratuity exempted from tax depends on whether the employer is covered under the Payment of Gratuity Act, 1972.

Compliance with government rules: Like PF, gratuity is also protected and recognised by the government. Tax benefits: The amount of gratuity is tax free. If the company is not registered under the ...

Employers often reward employees with additional financial benefits as a token of appreciation for their dedicated service.

According to the rule, if an employee has worked in a company for 4 years and 8 months, then his job is considered to be of full 5 years and he is given a gratuity amount according to 5 years.