India amends Payment of Gratuity Act thresholds
Gratuity ceiling raised to ₹25 lakh; eligibility window unchanged at five years.
The ceiling change is also a financial reporting change. If you maintain an actuarial valuation, the next valuation will reflect a step up — talk to your auditor before year end.
For startups with no one near the 5-year mark, this is not yet a cash question. It will be in 24 months. Track the dates.
What this means for solo HR
Long-tenured staff approaching five years now have a larger expected payout. Re-run your liability model.
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India amends Payment of Gratuity Act thresholds Long-tenured staff approaching five years now have a larger expected payout. Re-run your liability model. Full read on HR Asia → https://hrasia.co/news/india-pog-amendment
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