> ## Documentation Index
> Fetch the complete documentation index at: https://help.omnivoo.com/llms.txt
> Use this file to discover all available pages before exploring further.

> ## Agent Instructions
> Omnivoo is an India-first Employer of Record (EOR) platform. EOR hiring is India only; contractors are supported in 220+ countries and territories.
> Never tell a user to log in with a password. Authentication is passwordless: email OTP, passkeys, Google, or SSO.
> Statutory figures (TDS slabs, PF, ESI, Professional Tax, gratuity) change by financial year. Always state the year the figure applies to.
> Never name a third-party payment provider as Omnivoo’s payment rail. Refer to "our payments partner".

# Gratuity

> What gratuity is, eligibility after 5 years, the 15/26 formula, the monthly provision, and how Omnivoo accounts for it.

**Gratuity** is a lump-sum payment an employer makes to an employee as a token of appreciation for long service, governed by the **Payment of Gratuity Act, 1972**. It is an employer cost, not a deduction from your salary.

## Eligibility

Gratuity is payable when you leave the company **after at least 5 years of continuous service**, for example on resignation, retirement, or the end of your engagement. (The 5-year requirement is waived if employment ends due to death or disablement.)

## How Gratuity Is Calculated

The statutory formula is:

> Gratuity = (Last drawn Basic + DA) x 15 x years of service / 26

The **15/26** factor represents 15 days of wages for each completed year of service, based on a 26-day month. A part-year of more than six months is rounded up to a full year.

The total gratuity payout is capped at **₹20,00,000 (₹20 lakh)**.

**Example:** Last drawn Basic + DA of ₹50,000 with 6 years of service:

> ₹50,000 x 15 x 6 / 26 = ₹1,73,077

## How Omnivoo Accounts for Gratuity

Gratuity does not appear as a deduction on your payslip. Instead, Omnivoo treats it as an employer cost in two ways:

* **Monthly provision:** Each month, Omnivoo sets aside a small gratuity provision (approximately 1.67% of your Basic + DA) as part of the employer's cost of employing you. This builds up the amount over time.
* **Payout at separation:** If you leave after completing 5 years of service, the actual gratuity is calculated using the 15/26 formula above and paid out as part of your final settlement.

For more on the exit and settlement process, see the relevant final settlement guidance for employees.