HR Glossary

What is Gratuity?

A statutory retirement benefit under the Payment of Gratuity Act, 1972, requiring Indian employers to pay a lump sum to employees who complete 5 or more years of continuous service.

Why it matters in hiring

Gratuity comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with G

• Good Conduct Certificate (UAE)
• GOSI - General Organization for Social Insurance (Saudi Arabia)
• GPSSA - General Pension and Social Security Authority (UAE)
• Graphic Rating Scale
• Gratuity (UAE)
• Group Medical Insurance
• Gross Pay
• Gym Membership

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.