Step-by-Step Guide to Writing a Gratuity Application for Employees

If you’ve completed five or more years in a company and are leaving due to resignation, retirement, or any valid reason, you are eligible to receive gratuity under the Payment of Gratuity Act, 1972. To receive it, you must submit a formal gratuity application letter to your employer.

Many employees delay or skip this step, either due to lack of knowledge or confusion about what to write. A properly written application helps the employer process your request faster and avoids back-and-forth communication.

This article explains how to write an application for gratuity in a simple and clear way. You’ll find out what details to include, how to format your letter, and how to avoid common mistakes.

We’ll also share a sample format that you can copy, fill with your details, and send. The language is polite and professional, with no complex words or unnecessary extras. Whether you are leaving on your own or retiring, this guide will help you request your gratuity properly.

What Is Gratuity?

Gratuity is a one-time payment given by the employer to the employee as a reward for long-term service. It is paid when an employee leaves the company after completing at least five continuous years of service.

It is governed by the Payment of Gratuity Act, 1972 and is applicable to companies with 10 or more employees.

Who Can Apply for Gratuity?

You can apply for gratuity if:

• You worked for 5 years or more in the same company
• You are leaving due to resignation, retirement, death, or disablement
• Your company falls under the Gratuity Act

When to Apply for Gratuity?

You should submit your application:

• Immediately after leaving the company
• Within 30 days from the last working day

If the employee is deceased, the nominee or legal heir can apply.

What to Include in the Gratuity Application Letter

Your application should clearly mention:

• Full name
• Employee ID (if any)
• Job title and department
• Date of joining and leaving
• Total years of service
• Reason for leaving
• Request for gratuity payment
• Contact details
• Supporting documents (resignation letter, ID proof, etc.)

Use formal language. Keep the tone respectful and to the point.

Gratuity Application Letter Sample

To
The HR Manager
[Company Name]
[Company Address]

Subject: Request for Gratuity Payment

Dear Sir/Madam,

I am writing to request the payment of gratuity under the Payment of Gratuity Act, 1972. I joined [Company Name] on [Joining Date] and worked until [Last Working Date], completing [Total Years] of service in the [Department] as a [Designation].

I request you to kindly process my gratuity payment. Please find attached my documents for your reference.

Thank you.

Sincerely,
[Your Name]
[Employee ID]
[Phone Number]
[Email Address]

Tips for Writing the Application

• Write in a clear and formal tone
• Keep it short and structured
• Make sure all dates and job details are accurate
• Attach necessary documents to avoid delays

How Is Gratuity Paid?

Gratuity is usually paid by bank transfer within 30 days after approval. The standard formula is:

Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26

“Salary” here includes basic pay and dearness allowance.

You can use our Gratuity Calculator to find out your estimated amount quickly.

“Salary” here includes basic pay and dearness allowance.

What If the Employer Delays Payment?

If your employer does not respond within 30 days, you can file a complaint with the Labour Commissioner. As per law, interest may apply on delayed payments.

Can You Apply Online?

If your company has an HR portal, you may be able to submit your application online. Otherwise, you can email a scanned copy of your signed letter.

Conclusion

To claim your gratuity, a proper application is required. The process is simple—write a formal letter with accurate details, attach documents, and send it to HR right after you leave the company.

This small step ensures you get the amount you’re entitled to under the law. Don’t delay it, and don’t complicate it. Use the sample format to make the task easier.

If your company allows online submission, take advantage of it. If not, a printed and signed letter works fine.

Once submitted, follow up if needed, but stay professional. If there’s no response, the law protects your right to file a complaint.