Can gratuity be paid in advance for a person who had worked for more than 5 years, for medical treatment? - CiteHR
Tsivasankaran
Consultant
Nathrao
Insolvency N Gst Professional
Nagarkar Vinayak L
Hr And Employee Relations Consultant
Aks17
Compliance Manager
+1 Other

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Can gratuity be paid in advance for a person who had worked for more than 5 years, for medical treatment?
Gratuity is paid only on exit after complying with terms for payment of gratuity.
If company wants to help,they can give ex gratis payment for medical treatment(which will be unrelated to gratuity)

Hi
As rightly mentioned by the learned member, the payment of Gratuity arises only after the employee services are severed by any of the following means termination/retirement, permanent disablement, death or superannuation only.
Gratuity is not paid while a person still serving the company/organization.
Thanks and Regards

Payment of Advance as Loan to be recovered from the amounts payable at the time of exit is possible. Do not pay as advance against Gratuity. You can Pay an advance towards Medical expenses. Issue a letter stating that considering the employees request the recovery is delayed Also mention if the employee happen to resign in the meantime, before recovering the advance, the same shall be recovered from money payable to him at the time of exit
Sivasankaran

Dear Colleague,
It is goodness on your part to think of helping employee in financial distress .But question is paying it against gratuity which is yet not due, is the only option you have.
I think it is possible to pay him short term loan recoverable in suitable instalments from his salary.
But there no bar for you to pay it against gratuity by creating suitable documents .
Regards,
Vinayak Nagarkar
HR- Consultant

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