Once you have 10 or more employees, gratuity (a lump sum after five years' service) becomes payable; larger employers fund it through an approved trust for tax efficiency.
What we do
- File the employer's notice of applicability with the Controlling Authority under the Code on Social Security, 2020, and set up gratuity registers and nominations (the older "Form A" under the 1972 Rules has been replaced by the forms under the Social Security (Central) Rules, 2026 — we file the current form).
- Set up a gratuity trust: trust deed, trustee appointments, PAN, bank account, actuarial valuation, and application for approval of the fund under the Income-tax Act, 2025 (Schedule XI, Part B) so contributions are deductible.
- Coordinate with insurers for group gratuity schemes where preferred.
Key deadlines / thresholds
| Item | Rule |
|---|---|
| Applicability | 10 or more employees |
| Notice to Controlling Authority | Within 30 days of the Code becoming applicable to the establishment |
Documents you'll need
- Employee count and headcount history; incorporation documents
- For a trust: draft trust deed, trustee KYC, actuarial report, board resolution
Typical timeline
Typically notice — 1 week; trust approval — 3–6 months, dependent on the tax department. Indicative. Government processing times vary.
Download the document checklist (PDF)
Questions we are asked most
How long does Gratuity take?
Typically notice — 1 week; trust approval — 3–6 months, dependent on the tax department. Government processing times vary.
What documents do you need for Gratuity?
Employee count and headcount history; incorporation documents. For a trust: draft trust deed, trustee KYC, actuarial report, board resolution.
Last updated: September 21, 2026.