Gratuity is that part of the salary of an Employee which he receives from his/her employer in gratitude for the services offered to the employer’s company. It is one of the retirement benefits given by the employer to the employee, leaving the job.

‘Employee’ as per ‘The Payment of Gratuity Act, 1972, means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to do any skilled, semi­skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for the payment of gratuity