GratuityLiability Estimator

Under the Payment of Gratuity Act No. 12 of 1983, all employees who have completed 5 or more years of continuous service are entitled to a gratuity payment upon termination, resignation, or retirement. The statutory minimum is calculated as half a month's salary for each year of completed service.

Employers with 15 or more employees are legally required to pay gratuity. The payment must be made within 30 days of the employee's last working day. Failure to pay can result in legal action through the Labour Tribunal.

For businesses managing multiple employees, tracking gratuity liabilities is essential for financial planning. Jaffna Business Advisory connects you with qualified Chartered Accountants who can set up proper provision accounting and HR compliance frameworks.