Mmo 2025 Gratuity Act. — in general terms, gratuity is a sum of money paid by an employer to its employee at the end of the period of his/her employment as a tip for contributing to the. — the payment of gratuity act provides for penalties and legal actions against employers who fail to comply with the gratuity payment obligations.
— according to the gratuity rules 2021, gratuities paid by organisations covered by the payment of gratuity act, 1972, up to a total of ₹20 lakh, are exempt from. The act provides for payment of gratuity at the rate of 15 days wage s for each completed year of service subject to a maximum of rs.