Gratuity is a lump sum some employers pay when employment ends after a qualifying period of service. For private employers, no statute we found requires it: where it is paid, the right comes from the contract, staff handbook or a collective agreement.
Gratuity formulas multiply years of service by an amount of pay, for example one month’s final basic salary for each completed year, with a minimum qualifying period such as five years. Once promised in writing, it must be paid as written.
See gratuity in Nigeria for formulas and a free estimator.
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