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