Commercial The Payment of Gratuity Act, 1972 Bare Act by Commercial’s Editorial Board Latest Edition

This edition of The Payment of Gratuity Act, 1972 (Act 39 of 1972), as amended by The Payment of Gratuity (Amendment) Act, 2018 (Act 12 of 2018, dated 29-3-2018, w.e.f. 29-3-2018 vide S.O. 1419(E), dated 29-3-2018), is presented along with The Payment of Gratuity (Central) Rules, 1972 and a Payment of Gratuity – Ready Reckoner. This Act provides for a statutory right to gratuity payment to employees in industrial, commercial, and other establishments, as a measure of social security and retirement benefit.

The book presents the bare text of the law—precisely as enacted—without commentary or interpretation, making it ideal for statutory referencing, academic study, and compliance use. It ensures direct access to the provisions regulating eligibility, computation, and payment of gratuity, including the latest enhanced monetary limit of ₹20 lakh.

The content spans the full scope of the Act and Rules, including:

• Applicability of the Act to establishments and categories of employees

• Conditions for eligibility and entitlement to gratuity

• Calculation of gratuity amount and maximum permissible limits

• Provisions for payment in case of death or disablement of an employee

• Forfeiture of gratuity under specified circumstances

• Nomination procedures and rights of nominees/legal heirs

• Employer obligations regarding gratuity payment and timelines

• The Payment of Gratuity (Central) Rules, 1972 governing procedural requirements

• Enforcement mechanisms, penalties, and dispute resolution

• Ready Reckoner tables for quick computation of gratuity payable under different service tenures and salary levels

This edition is particularly suitable for:

• HR professionals and employers ensuring compliance with gratuity laws

• Employees seeking to understand their rights and entitlements

• Legal practitioners handling employment and labour law matters

• Labour officers and inspectors responsible for enforcement

• Students and academicians specialising in labour and social security laws

Whether used in industrial establishments, corporate HR departments, or legal practice, this edition delivers the full legislative authority of The Payment of Gratuity Act, 1972, as applicable in 2025.