Define gratuity

The most common requirement of the majority of employees is security and maintenance for the later life. This can only be possible when the person gets financial assistance, for his/her survival. Gratuity is one of the old-age retiral benefits, in which an employee gets one-shot payment, from the employer, for the services rendered by him/her to the enterprise. Likewise, there is another retirement plan called as pension, which guarantees continuous payment of fixed sum to the person or his dependent survivors, for the services rendered by him/her to the organisation. Both gratuity and pensions are schemes by the government that help salaried employees, to live their life comfortably after they retire or leaves the establishment. The article makes an attempt to shed light on the differences between gratuity and pension, so take a read. Content: Gratuity Vs Pension • • • • Comparison Chart Basis for Comparison Gratuity Pension Meaning Gratuity can be understood as a social security benefit provided to the employees by the employer in appreciation of service, after their retirement or death. Pension is a saving scheme, wherein employer invests certain sum to guarantee payment of definite sum at regular intervals, to the employee or his/her dependent survivors, after retirement or death. What is it? Gift Retirement plan Payment Lump sum payment Installment Payment Contributory service Minimum 5 years of service is required. Minimum 10 years of service is required. Definition ...

The most common requirement of the majority of employees is security and maintenance for the later life. This can only be possible when the person gets financial assistance, for his/her survival. Gratuity is one of the old-age retiral benefits, in which an employee gets one-shot payment, from the employer, for the services rendered by him/her to the enterprise. Likewise, there is another retirement plan called as pension, which guarantees continuous payment of fixed sum to the person or his dependent survivors, for the services rendered by him/her to the organisation. Both gratuity and pensions are schemes by the government that help salaried employees, to live their life comfortably after they retire or leaves the establishment. The article makes an attempt to shed light on the differences between gratuity and pension, so take a read. Content: Gratuity Vs Pension • • • • Comparison Chart Basis for Comparison Gratuity Pension Meaning Gratuity can be understood as a social security benefit provided to the employees by the employer in appreciation of service, after their retirement or death. Pension is a saving scheme, wherein employer invests certain sum to guarantee payment of definite sum at regular intervals, to the employee or his/her dependent survivors, after retirement or death. What is it? Gift Retirement plan Payment Lump sum payment Installment Payment Contributory service Minimum 5 years of service is required. Minimum 10 years of service is required. Definition ...