Pan Singh Dangwal
Joint Manager
Rahul Chhabra
Hr Professional
Sharmavk05
Consultant
Sai18
Hr & Payroll Consultant At Kredily
Nathrao
Insolvency N Gst Professional
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Riteshmaity
Labour Law Advocate
K C S Kutty
Labour Laws
+2 Others

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I complete 4 Years & 8 Months on 5 August in my current company, and i plan to move out seeking new ventures.
and my appointment letter doesn't state any gratuity benefits.
So the question is
1) Will i be entitled to get Gratuity After completing 4 Years & 8 Months
2) And If my Appointment letter doesn't state any gratuity pay outs will be able to get the gratuity amount based on the Gratuity Act.
Your response would be highly appreciated.

what does your company policy or HR manual say about Gratuity?
Whether your appointment order says about gratuity or not does not matter.
If the company has more than 10 employees ,it would generally fall under the provisions of Payment of gratuity Act.
4 years 8 months service may not make you eligible for gratuity as 5 years continuous service is prescribed by the act.

Mr Rahul : There is no such policy or Hr manual or Hr booklet in my company.
Mr Nathrao: Earlier today I spoke to one of my ex Hr Managers who appraised to me saying that 8 months is calculated as 1 year in the Gratuity act so if a employee works for 4 years and 8 months he would be still eligible for Gratuity.
Since I was not sure about i have used this forum so that experienced professionals can help me in making a decision.

Please refer attachment. Will be of great ise to you. There are many posts on the same

Attached Files
File Type: pdf thepaymentofgratuityrules.pdf (152.9 KB, 888 views)

Dear Aniskhane,
If payment of gratuity act whether mentioned or not mentioned in the appointment order, it is irrespective.
You will be eligible for the gratuity. The payment of gratuity ( second amendment) act, 1984 clarifies that if an employee completed 4 years 8 months of service with more than 10 employees in that organisation will be eligible for gratuity.
i.e; 240 days = 1 year where the company follows 5 days a week.
The formula for gratuity is as follows;
Payment of Gratuity = Basic salary* No. of years of service* 15/26
Hope this may help you.
Seniors please correct me if i m wrong.
Thank you

Dear Uma Maley,
The basic condition for qualifying gratuity payment under the act is still 5 year of continuous service. However, in order to count 01 year continuous (uninterrupted) service the below is used:-
In the case of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than-
(i) 190 days, if employed below the ground in a mine, or
(ii) (ii) 240 days, in any other case, except when he is employed in seasonal establishment.
Pls be noted the 240 days (which generally told as 08 month) has been taken on basis of Point (i), which initially reformed to count 01 year service for the mid period (1st to 4th year service). Means if an employee work for 240 or more days in a service year than it will be countable as 01 year. That does not mean 240 days will be equal to 05th year . First the employee need to complete 05th year than only the 240 days grace can be taken. This is my opinion on basis of the language drafted in the Act.
However, there are cases (court verdict) where employees got gratuity for 4 years and 08 months service, but still there is no AMENDMENT in the basic Act which shows the eligible period as 04 year 08 month. Hence in the first instance the company (employer) can deny to pay the gratuity for less than 05 year service. But if the employee put the case to the court and the lawyer give example of previous court verdict than the court may direct the employer to pay the gratuity.
There are so many discussion happened on the topic and still it is all time topic for HR professionals. Hope my points are cleared. Fellow members can put more light or correct me.

Uma Maley had mentioned that as per the 1984 amendment the eligibility period is 4 years and 8 months. Will you please the share the text matter of the amendment ? Please read Section 4 and Section 2A of the Payment of Gratuity Act 1972, before making comments.
Appreciations to Pan Singh Dangwal for the clarification.

Dear Sir, is there any ceiling of year for gratuity payment. if any employee work 40 year in same company then payable gratuity payment will be for 40 year complete or less. kindly advise
Hi, 4 Years 8 months it doesn’t matter,You have to complete 240 days (ie,Saturday Working days) or 190 days ( Saturday holiday).Its enough to getting gratuity.

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