"Gratuity Rules 2025: Unlock the Wealth You’ve Earned"

Did you know your years of service could turn into a substantial financial cushion?

Gratuity is a reward for employees, governed by the Payment of Gratuity Act, 1972, given after completing 5 years of continuous service. With Gratuity Rules 2025, new updates may impact your payout, making it essential to plan wisely.

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Gratuity Calculation Made Simple

Formula: Gratuity = (Last Drawn Salary × Years of Service × 15) / 26

Examples (for ?50,000 salary):

• 5 Years: ?1,44,230
• 7 Years: ?2,02,922
• 10 Years: ?2,88,461

?? Longer tenure = higher payout!

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What’s Changing in 2025?

1. Inclusivity: Gig and contractual workers could qualify.
2. Shortened Tenure: Minimum service may reduce to 3 years.
3. Higher Tax-Free Limits: Ceiling may rise from ?20 lakhs.

Why It Matters

• For professionals: Strategically time your career moves.
• For business owners: Plan for employee retention and costs.

Action Plan

1. Know Your Numbers: Use the gratuity formula.
2. Plan Career Moves: Avoid missing out on benefits by leaving too early.
3. Leverage Your Payout: Reinvest in long-term assets or retirement funds.

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