Term · Explained
Pension and retirement contributions
Savings schemes for retirement to which employees and employers contribute - such as pension funds, provident funds, 401(k) plans, or national social security.
Read more All hr glossary
Pay & benefits
End-of-service benefit (gratuity, severance)
A payment to an employee on leaving after a period of service, called gratuity, severance, or end-of-service pay depending on the country.
- Topic
- Pay & benefits
- Read time
- 2 minutes
- Level
- Beginner
- Applies to
- HR teams and employees
What it means
Some countries require employers to pay a lump sum when employment ends, often after a minimum period of service and calculated from salary and years worked. Others rely on contracts or company policy. Eligibility, formulas, and tax treatment vary widely.
Benefits
- Helps employees understand their pay and benefits.
- Reduces payroll questions to HR.
- Builds trust through clarity.
- Helps compare offers correctly.
Example
- A common pattern is a set number of days or weeks of salary for each year of service.
Related terms
- Full and final settlement
- Notice period
- Redundancy pay
- Retirement benefits
Rates, limits, and rules (for example for pensions, social insurance, and end-of-service pay) differ by country and company and change over time. Treat these as general explanations and confirm the current position where you operate before relying on them.
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Term · Explained
Social insurance and statutory benefits
Government-run or mandated schemes that give workers health cover, sickness, unemployment, or disability support.
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Employee rights and questions
Plain-language answers on pay, leave, working hours, safety, and leaving a job.
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