Subject: Static GK (General Knowledge)
Book: Indian Money Knowledge
Gratuity is a lump-sum benefit paid to employees who serve at least five continuous years in an organization, regulated by the Payment of Gratuity Act. It rewards long-term loyalty, calculated based on last drawn salary and years of service. Students joining large firms should note if gratuity forms part of CTC (Cost to Company). Early planning ensures awareness of how this retirement perk supplements PF or pension, reinforcing one’s financial cushion.
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