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Gratuity Claim Letter Format

Apply to your employer for payment of gratuity on retirement, resignation or termination, with the service details and the amount claimed.

HR & Employment · Free, no sign-up · Downloads as an editable Word (.doc) file

What it is

Gratuity is a lump sum paid by the employer when an employee leaves after continuous service, as a reward for long service. It was governed by the Payment of Gratuity Act, 1972, where the employee applied in Form I and a nominee or legal heir in Forms J or K. From 21 November 2025 gratuity is governed by the Code on Social Security, 2020, which keeps the formula and extends gratuity to fixed-term employees after one year. This template is the written claim with the figures.

When it is used

  • Retirement or superannuation.
  • Resignation after completing five years of continuous service.
  • Termination or retrenchment of an eligible employee.
  • A nominee or legal heir claiming on the death of the employee.

What the template covers

  • Employee and employer details
  • Last designation, date of joining and date of exit
  • Reason for exit
  • Last drawn basic pay and dearness allowance
  • Completed years of service and gratuity claimed
  • Bank details and who is claiming

Details you will need

The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.

Claim

Claim Date

Employee

Employee Name; Address; PAN

Employer

Employer Name; Employer Address

Service Details

Last Designation; Date of Joining; Date of Exit; Reason for Exit

Gratuity Calc

Last Drawn Wages: Basic + DA (Monthly, ₹); Completed Years of Service; Gratuity Claimed (₹)

Bank

Bank Name; Account Number; IFSC

Claim Type

Claim by

Gratuity is 15 days' wages for each completed year of service (more than six months counts as a full year), where a month is taken as 26 days, up to the ceiling notified under the law (₹20 lakh under the Payment of Gratuity Act; verify the current ceiling on labour.gov.in). Five years of continuous service is required, except on death or disablement, and one year for fixed-term employees under the Code. The employer should pay within 30 days of it becoming payable, failing which interest is payable. Check the claim form under the rules that now apply to your establishment on labour.gov.in or the State labour department site.

Generate the Gratuity Claim Letter (Form I — PG Act 1972)

Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.

Generate this document →

Need this checked against your facts, or the registration or filing that follows (e.g. PF, ESI, TDS on salary)? Contact SKAG and Associates

Frequently asked questions

How is gratuity calculated?

Last drawn basic plus DA x 15 x completed years of service / 26, subject to the ceiling of ₹20 lakh for employees covered by the law.

Is gratuity taxable?

For non-government employees it is exempt up to ₹20 lakh in a lifetime under the income-tax law; the balance is taxed as salary. Government employees are fully exempt.

What if the employer does not pay gratuity?

The employee can approach the controlling authority under the gratuity law for the State, which can direct payment with interest.

This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.

Last updated: 30 October 2026

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