An amount of money given by the employer to the employee at the time of retirement for services rendered is called:

Correct option is D

The Correct Answer is: (D) Gratuity

Explanation:
Gratuity is a lump-sum amount paid by an employer to an employee at the time of retirement, resignation, or death, as a token of appreciation for the services rendered over the years. It is governed by the Payment of Gratuity Act, 1972 and is applicable to employees who have completed at least 5 years of continuous service in an organization.

Information Booster:
• Gratuity is paid as a retirement benefit to eligible employees.
• It becomes tax-exempt up to ₹20 lakhs for non-government employees under Income Tax laws.
• It is mandatory for firms with 10 or more employees.
• The amount depends on last drawn salary and number of years of service.
• It is different from pension, which is a regular monthly payment.
• Governed by the Ministry of Labour and Employment, Government of India.

Additional Information:
•  Pension –  A monthly payment given after retirement, not a one-time lump sum.
• Provident Fund – A retirement savings contributed by both employee and employer during service.
•  Bonus –  Extra payment given usually annually, not linked to retirement.