Leave at year 4 and gratuity is usually ₹0. CTC decks never highlight that. If you hop every 2–3 years, stop counting gratuity as “your money.”
Getting started
Gratuity and job hopping: why switching every 2 years costs you
How the 5-year gratuity rule works, what job-hoppers lose, and how to factor gratuity into total compensation — not just CTC.
6 min read · Updated 4 July 2026
Common questions
- Do I get gratuity if I leave before 5 years?
- Generally no. Job-hopping every 2–3 years usually means you never collect gratuity.
Try it yourself
Keep reading
What is gratuity? Calculation, eligibility and tax in India
Gratuity explained for Indian employees: 5-year rule, formula (15/26 × salary × years), tax exemption up to ₹20 lakh, and what happens when you switch jobs.
CTC vs in-hand: why your offer letter is lying to you
Decode a fresher offer letter in India — fixed vs variable, PF, gratuity, joining bonus clawback — and see what actually hits your account every month.
PF transfer when you switch jobs: do this, not withdrawal
How to transfer EPF to a new employer in India, why withdrawal hurts, and a checklist so your UAN does not become a graveyard of old accounts.
General education, not personalised financial advice. Rules and rates change — verify the current position before you act.