Gif 2024 Gratuity Meaning. Gratuity is a benefit that salaried employees in india enjoy under the provisions of the payment of gratuity act, 1972. Gratuity covered under the payment of gratuity act, 1972 is a monetary benefit or surplus amount of money from an employer to certain employees upon completion of a period of service.

Gratuity is a component of an employee’s gross salary. In india, it is governed by the payment of gratuity act of 1972.