Under the Code on Social Security, 2020, the provisions relating to gratuity entitle an employee to receive gratuity on termination of employment after rendering continuous service for a specified minimum period. For an employee (other than those on fixed term employment or working journalists), gratuity is payable on termination, after rendering continuous service for not less than:

Section 53 of the Code on Social Security, 2020 governs the payment of gratuity. Gratuity is payable to an employee on the termination of employment after he has rendered continuous service for not less than five years, on his superannuation, retirement, resignation, death, or disablement due to accident or disease. The condition of five years of continuous service is not necessary where termination is due to death or disablement, or in the case of fixed term employees on expiry of the term, or for working journalists as may be notified. Gratuity is calculated at the rate of fifteen days' wages for every completed year of service based on the rate of wages last drawn. In the case of death, the gratuity is paid to the nominee or legal heir. This provision ensures a lump-sum retirement benefit recognising long and continuous service.