Home › Career & Office › Gratuity Claim Letter After Resignation

Gratuity Claim Letter After Resignation

Gratuity is a statutory benefit earned through years of continuous service, and it is worth claiming formally. This free gratuity claim letter helps you request your entitlement with the service details HR needs.

Fill in your details

Your letter

When and how to use this letter

Confirm your eligibility before writing: in most gratuity frameworks, you qualify after five years of continuous service with the same employer, though some schemes have different thresholds. Check your company's policy and the applicable law, since the rules and the calculation formula vary by jurisdiction. Send the claim by email to HR soon after your exit formalities are complete.

Provide the exact service dates and your last drawn salary, because gratuity is typically calculated from these two figures. If you had breaks in service, promotions, or transfers between group companies, mention them clearly so HR applies the correct continuous-service period. Ask for the calculation breakdown in writing, not just the final amount.

Processing can take several weeks since gratuity often requires finance approvals beyond routine payroll. One non-obvious tip: verify whether your years of service are rounded in your favor. Many gratuity rules round up a partial year beyond six months to a full year, which can meaningfully increase your payout, and payroll teams do not always apply this automatically.

Keep a copy of the gratuity calculation and payment advice with your permanent records. You may need them for tax filing or future reference. If you rejoin the same employer later, clarify in writing whether your earlier service counts toward a fresh gratuity period.

Frequently asked questions

How is gratuity calculated?
The standard formula in many jurisdictions is 15 days of salary for each completed year of service, based on your last drawn basic salary plus dearness allowance. The exact formula and eligibility period depend on your local law and company policy. Always ask HR for the written calculation so you can verify it.
Am I eligible if I resigned before completing five years?
Under most gratuity laws, five years of continuous service is the threshold, though some company schemes are more generous. Check both the applicable law and your company's specific policy. If you are close to the threshold, confirm how partial years are treated.
Is gratuity taxable?
Tax treatment depends on your jurisdiction and the amount. Many tax systems exempt gratuity up to a specified limit and tax the excess. Ask your company's finance team or a tax advisor about the exact position so there are no surprises when the payment arrives.

Related templates

💬 Comments

Used this template, or have a question about it? Share your experience below — it helps everyone who writes a similar letter.