Gratuity

Overview

Gratuity is a statutory benefit paid to all full-time permanent employees who have worked continuously for Intuit for at least four years and 190 calendar days. It is an amount paid to an employee based on the duration of their total service within the organization and is payable on cessation of employment by taking the last drawn salary as the basis for the calculation.

Eligibility

Regular employees.

How it works

How to enroll

You are automatically enrolled.

How to get started

As an organization, we do not have any cap on gratuity. We pay out the full amount as per the following guidelines:

  • The gratuity is paid at 15 days salary (basic pay) for each completed year of service. The last drawn monthly basic salary is considered for calculation.
  • A month is considered as 26 days for calculation (15/26).
  • A period of more than six months is considered as one year and less than six months is ignored for computation.

Formula for calculation of gratuity amount

Gratuity = (last drawn basic salary x 15 days x number of years of service)/26

Exemption from tax

The gratuity received up to the limit of INR 2,000,000 is liable to be exempted from taxation under the Income Tax Act, and any amount over and above this limit is taxable. Gratuity received from a previous employer is to be pooled with gratuity received from the present employer for computing tax-exemption limit. It is the employee’s responsibility to ensure that they disclose any prior gratuity amount they receive to ensure the appropriate tax exemption is provided.

Please ensure your nominee details are updated so that your beneficiary receives the benefit. Complete the Application for Gratuity Settlement Form and the Gratuity Self Declaration Form to receive gratuity at the time you leave Inuit. As these are government forms, they have to be printed back to back, filled out by hand, and submitted in hard copy with physical signatures to the Payroll team.

Resources

Gratuity Self Declaration Form
Application for Gratuity Settlement Form

Where to get help

HR Connect
000-8000-505-007
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