The Gratuity Act, 1972 is an important legislation in India that provides for the payment of gratuity to employees who have completed a certain period of service with their employer. Here are 5 important facts about the Gratuity Act, 1972:

1.    Applicability: The Gratuity Act, 1972 applies to all establishments that employ 10 or more persons. This includes factories, mines, oilfields, plantations, ports, railways, shops, and other establishments.
2.    Eligibility: An employee is eligible for gratuity if they have completed at least 5 years of continuous service with their employer. However, in the case of death or disablement of the employee, the gratuity can be paid even if the employee has not completed 5 years of service.
3.    Calculation of Gratuity: The gratuity amount is calculated as 15 days' wages for every completed year of service or part thereof in excess of 6 months. The calculation of wages for this purpose includes basic salary and dearness allowance, but excludes any other allowances such as house rent allowance, overtime allowance, bonus, commission, etc.
4.    Tax Implications: Gratuity received by an employee is exempt from income tax up to a certain limit. The limit is currently Rs. 20 lakhs, and any amount received above this limit is taxable as per the employee's income tax slab.
5.    Payment of Gratuity: The employer is required to pay gratuity to the employee within 30 days from the date it becomes payable. If the employer fails to pay the gratuity within this period, the employee is entitled to simple interest on the gratuity amount from the due date of payment till the date of actual payment.