Generally, Employees Provident Fund under the EPF Act,1952 and Gratuity under the Payment of Gratuity Act,1972 are the statutory social security benefits available to the salaried employees employed in industries in India on the termination of employment.
However, they are distinctly different from each other in terms of applicability, coverage, method of institution of funds for distribution, computation of the benefit and its method of payment. Thus they are independent of each other, the eligibility for one does not have any impact on the other.
If a person gets employed in any establishment to which the PG Act,1972 is applicable u/s 1(3) and when he completes not less than 5 years of continuous service in the same establishment, he is eligible for gratuity under the Act irrespective of his nature of employment or the wages/salary received by him notwithstanding the applicability of the EPF Act to the establishment or the coverage of the scheme in respect of him.
From India, Salem