Knowledge about Gratuity & Pension
What is a gratuity?
A gratuity is a one‑time lump‑sum payment granted in recognition of years of public service.
What is a pension?
A pension is a monthly payment for life, also granted for public service.
How do the benefits differ?
- Gratuity: Lump sum once; generally no medical benefits.
- Pension: Monthly for life; medical coverage for recipient and eligible family members.
Which should I choose?
It depends on your personal financial plan. If you need a lump sum to clear debt or invest, a gratuity may fit. If you prefer long‑term stable income, a pension is usually better.