Vakil AI
Employment & salary

Gratuity not paid when you left your job

Gratuity is now governed by the Code on Social Security, 2020. Here's who is eligible, how it is worked out, the 30-day payment rule and where unpaid gratuity is claimed.

Reviewed by AnjaliUpdated 6 min readRules vary by state ↓

In short

  • The Payment of Gratuity Act, 1972 was repealed when the Code on Social Security, 2020 came into force on 21 November 2025. Gratuity is now in Chapter V of the Code.
  • Most employees qualify after five years of continuous service. Fixed-term employees qualify after one year under the contract.
  • Gratuity is usually 15 days' wages for each completed year of service, based on your last wages, up to a ceiling the central government notifies.
  • The employer must pay within 30 days of the gratuity becoming payable, or pay interest.
  • Disputes go to the competent authority appointed by the government.

Reviewed by

  • Approved ·

    Practises civil and consumer law

    Reviewed this guide for accuracy against the sources listed below. How we review guides →

02What the law says

Chapter V of the Code applies to every factory, mine, oilfield, plantation, port and railway company, and to every shop or establishment with ten or more employees. Gratuity is payable when employment ends after at least five years of continuous service: on retirement, resignation, death, or disablement from accident or disease. The five-year requirement doesn't apply on death or disablement, or when a fixed-term contract ends. Under the Social Security (Central) Rules, 2026, a fixed-term employee becomes eligible after at least one year of service under the contract. Working journalists qualify after three years.

The amount is 15 days' wages for every completed year of service, plus any part of a year over six months, at the rate of wages last drawn. For monthly-paid employees, 15 days' wages means monthly wages ÷ 26 × 15. Fixed-term employees get gratuity in proportion to their service. The Code caps gratuity at an amount the central government notifies. An award, agreement or contract can give you better terms. Gratuity can be forfeited, fully or partly, only in limited cases, such as loss caused to the employer's property or termination for violent conduct or an offence involving moral turpitude.

When gratuity becomes payable, the employer must work out the amount and tell the employee and the competent authority in writing. It must pay within 30 days. If it doesn't, it has to pay simple interest from the due date, at a rate the central government notifies. If the amount or eligibility is disputed, the employer must deposit the amount it admits with the competent authority, which decides the dispute.

The forms and timelines described below come from the Social Security (Central) Rules, 2026. Where a state government is the "appropriate government" for an employer, its own rules apply, and the competent authority is appointed by that government, so details can differ by state.

Your state

General information for India. State-specific notes are listed below.

Karnataka · Karnataka: gratuity claims and the draft state rules

Where the Karnataka government is the "appropriate government", it appoints the competent authority for gratuity under Section 58 of the Code on Social Security. Karnataka published draft Code on Social Security (Karnataka) Rules, 2026 in the Karnataka Gazette (Part IV-A, No. 103) on 29 January 2026, with 45 days for objections. Final rules could not be confirmed as notified as of 15 November 2026, so the draft's forms and time limits are not law. The central government has said the relevant provisions of the existing labour Acts and their rules continue in force during the transition. Which officer is the competent authority for a particular area can be confirmed with the Labour Department.

Labour Department, Government of Karnataka (opens in new tab)

Keralam (Kerala) · Keralam: gratuity claims

In Keralam (formerly Kerala), gratuity disputes for most private employers go through the Labour Commissionerate. Its website lists the state's rules under the Code on Social Security as "Draft Rules", and final rules could not be confirmed as notified as of 15 November 2026. Under the earlier Payment of Gratuity Act, the Commissionerate's pages describe its own officers as the authority for gratuity claims. Which officer is the competent authority under the Code for a particular district can be confirmed with the Commissionerate or its Labour Call Centre (1800 42555 214).

Labour Commissionerate, Government of Keralam (opens in new tab)

Tamil Nadu · Tamil Nadu: gratuity claims

In Tamil Nadu, gratuity disputes for most private employers go through the Commissionerate of Labour. As of 15 November 2026, no Tamil Nadu rules under the Code on Social Security, draft or final, could be found. Under the earlier Payment of Gratuity Act, an undated department document named Deputy Commissioners of Labour (in the offices of the Joint Commissioners of Labour) as the controlling authority and Zonal Additional Commissioners of Labour as the appellate authority. Whether these officers have been appointed as the competent and appellate authorities under the Code could not be confirmed.

Commissionerate of Labour, Tamil Nadu (opens in new tab)

03Where you can go

  1. Your employer, in writing. Gratuity is applied for in the form the applicable rules set (Form IV under the Central Rules).
  2. Competent authority. The officer appointed by the government to decide gratuity disputes for your area, usually through the labour department.
  3. Appellate authority. An appeal against the competent authority's order goes to the government or the authority it names.
  4. Your nominee or legal heirs can claim if the employee has died.

04How it usually works

  1. 01

    After the last working day, the employee applies to the employer in writing. Under the Central Rules, this is ordinarily within 30 days of gratuity becoming payable.

  2. 02

    Under the Central Rules, the employer issues a notice within 15 days saying how much it will pay and when, or why it is refusing.

  3. 03

    The employer pays within 30 days of gratuity becoming payable.

  4. 04

    If it doesn't pay, pays less, or refuses, an application can be made to the competent authority. Under the Central Rules this is within 180 days, with extra time possible for sufficient cause.

  5. 05

    The competent authority hears both sides and decides the amount. Under the Central Rules, it aims to decide within six months.

  6. 06

    Either side can appeal within 60 days. An employer must deposit the amount ordered before its appeal is admitted.

05Time limits

  • 30 days: for the employer to pay after gratuity becomes payable (Section 56(3)).
  • 15 days: for the employer to respond to your application (Central Rules).
  • 180 days: to apply to the competent authority (Central Rules). Late applications can be accepted for sufficient cause.
  • 60 days: to appeal the competent authority's order, which can be extended by another 60 days.

06Documents to gather

  • Appointment letter and any fixed-term contract
  • Proof of your joining date and last working day: relieving letter, service certificate or emails
  • Last payslips showing basic pay and allowances
  • Your gratuity application and any reply from the employer
  • Nomination form, if a family member is claiming
  • Full-and-final settlement statement

07Common questions

The Code requires five years of continuous service for most employees. How service is counted, and whether a period close to five years qualifies, can depend on the facts and on court rulings. An advocate or the competent authority can confirm this for a particular case.

Fixed-term employees qualify after one year under the contract and are paid in proportion to their service. Workers supplied through a contractor are a separate situation, and liability depends on the arrangement.

The Code says the central government notifies the ceiling. Your employer can pay more under a contract or policy. The current notified figure can be checked with the labour department or an advocate.

The Code allows forfeiture only to the extent of the damage or loss caused, or in some cases of misconduct. A disputed forfeiture can be raised with the competent authority.

08Questions to ask an advocate

If you speak to an advocate, these questions can help make the conversation useful.

  • Does my period of service count as "continuous service" under the Code?
  • Has my gratuity been calculated on the right wages, given the Code's definition of wages?
  • Which government is the "appropriate government" for my employer, and so which competent authority do I approach?
  • Can I claim interest for the delay, and from what date?

09Sources

Related guides

Employment & salary

Final settlement or relieving letter withheld?

The Code on Wages, 2019 requires wages due on exit to be paid within two working days. Here's what the law says about final dues, relieving letters and where claims go.

6 min read
Employment & salary

Salary not paid or delayed?

The Code on Wages, 2019 sets deadlines for paying wages and a claims process. Here's how it works and where employees take unpaid salary disputes.

5 min read

This guide is general legal information for India, not legal advice. Laws and procedures change and can differ by state. For advice on your situation, speak to a qualified advocate.

Editorial policy

Get your situation organised

Vakil helps you understand your situation and prepare before you see a lawyer.