Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee. This takes place upon the employee leaving his job. Gratuity is given by the employer to an employee for the services rendered during the period of employment. It is usually paid at the time of retirement but it can be paid before provided certain conditions are met.
Employees Provident Fund (EPF) was established by Act No. 15 of 1958. The contributions are made to this fund on regular basis. Its purpose is to help employees to save a fraction of salary every month. The fund can be used in an event that the employee is no longer fit to work or at retirement.