Gratuity, India

The "Gratuity" benefit applies only to team members of Axelerant Technologies, Pvt. Ltd. (India).

What is Gratuity?

A lump sum payment, called Gratuity, is one of the many benefits Axelerant offers to acknowledge the team member's loyalty and dedication.

Eligibility for Gratuity

The Gratuity Act of India states that an employee becomes eligible for Gratuity after completing an uninterrupted five years of service at the same organization.

However, the Gratuity will be wholly forfeited during Exceptional Situations | Axelerant Initiated Separation, like the following:

• Breaching organizational or professional ethics.

• Breaking laws or legal agreements.

• Fraud–including excessive or improper equipment purchases.

In this regard, the decision of Axelerant Technologies Private Limited shall be final and binding on the team member.

Calculation of Gratuity

To calculate Gratuity, use the formula:

Gratuity = Last drawn salary (Basic salary + Dearness Allowance) x Number of completed years of service x 15/26.

Here, 15/26 denotes 15 out of 26 working days in a month.

Tax Implications

The 2018 amendment states that a gratuity received up to INR 20 lakh is tax-exempt. Any amount received above this limit is taxable.

Support

For further information about your benefits, contact the People Operations team.

This guide provides a general overview of Gratuity benefits in India. Please refer to the Payment of Gratuity Act, 1972, for detailed information.