Hi All Wanted to understand if gratuity is mandatory for IT companies based in India? Any supporting links to understand the same..

Gratuity is applicable to all companies, as soon as they have 10 employees.

Heard that its mandatory for manufacturing firms and IT companies can opt for it basis their needs.. Is this correct?

Nope 👎

@Akanksha Sogani Gratuity is governed by the act which is applicable to the whole of India below is the extract of the act for your reference. It is a mandatory component once the employee count touches 10 and will continue to be in force even after the count of employees reduces further to 10 subsequently. https://clc.gov.in/clc/sites/default/files/PaymentofGratuityAct.pdf

ok thanks for the quick help guys..