Gratuity To Employee Aged More Than 60 Years - CiteHR
Umakanthan53
Labour Law & Hr Consultant
N.Mohan
Hr Professional
Praveen30
Manager Accounts
Riteshmaity
Labour Law Advocate
Kanika Kapoor
Soft And Behavioural Skills Trainer
+2 Others

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Dear Seniors, Whether The Gratuity Is Applicable For Senior Citizens aged more than 58 years .Recently our organisation has re-appoint one employee (aged 60 years) after his retirement .
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Dear Praveen,

Age of superannuation is not yet determined by any Law. Retirement on attaining the age of superannuation is the service condition only mentioned in the Standing Orders or Service Regulations of the establishment and fixed thereto. Attainment of the age of superannuation does not entail automatic retirement from service and the employer has to effect it. A person of 60 years of age has been reappointed means that he was already in the service of the establishment either yours or elsewhere, got retired at the age of 58 years or so and then he has been employed afresh. Eligibility for gratuity under the Payment of Gratuity Act,1972 is based on the factors of length of continuous service under the same employer and the mode of termination of employment. Except death, all other modes of termination do not curtail re-employment of the same person. Therefore, irrespective of the age as well as earlier settlement of gratuity in the same establishment or elsewhere, a person reappointed is entitled to gratuity in his second or subsequent tenure also, if he completes the minimum qualifying service.
A person above the age of 60 years is entitled to gratuity. Gratuity is to be calculated on the length of his service and not his age.
Check www.labourlawhub.com for more information.
Greetings!
An employee is eligible for gratuity once he/she completes 5 years ( 4 years 10 months and 11 day) of continuous service in an organization.
It has nothing to do with age..
Hope it helps
Regards,
There is no age restriction in payment of gratuity. The only criteria he should work for 5 years of service again.
There are lot of views on minimum of 5 years service to be come eligible for Gratuity. Please let me know as stated by Kanika Kapoor that 4 years 10months and 11 days is deemed as 5 years service. Is there any notification on this issue ?
There is no age limit in Gratuity Act. One should be an employed person and should complete 5 years of service for eligibility of payment gratuity.
Dear sir I have a query related to gratuity. Can an employee Drawing basic salary 100000 is eligible for gratuity ?
Dear Ankur,
Eligibility for gratuity is not linked to the quantum of salary drawn by an employee. However, if the last-drawn salary comprises of basic salary and various allowances, only basic and dearness allowance have to be taken together for the purpose of computation of the concerned employee's gratuity on the termination of his employment. ( If the salary is a consolidated one, then the entire amount has to be taken into account). Cap on gratuity is provided in respect of the total amount payable only. Whatever the sum total of basic+D.A, the maximum amount of gratuity would be limited to the ceiling prescribed u/s 4(3) of the Payment of Gratuity Act,1972 which is Rs.10 Lakh at present.
As rightly pointed out above, even if an employee draws Rs.1,00,000/- per month as basic he will be entitled to gratuity provided that other conditions are fulfilled.
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