5 issues to consider for funding a gratuity scheme

Issues to consider for funding a gratuity scheme

Under the right circumstances, a decision for funding a gratuity scheme could deliver significant benefits to the companies. Gratuity is a statutory benefit – employers are required to pay a lumpsum benefit to their employees who have served for at least five years. The lumpsum is generally calculated as 15 days of eligible salary for […]

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Gratuity taxation – how it applies to your company

tax on gratuity

Almost all Indian companies (more than 10 employees) pay gratuity to their employees. Since, gratuity payments are an expense to the company, companies can claim tax-deduction on the same. You can read about Payment of Gratuity Act, 1972 here.

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