In order to be eligible for gratuity an employee has to render at least 5 years of service with an employer. This service is counted from the date of joining. Though there are some contraversies around the eligibility of gratuity spinned around a court verdict which allows an employee to get gratuity provided he has worked for 4 years and 240 days in the fifth year, the text of the verdict is not available right now with me. Therefore, I prefer to take the available rules which makes it mandatory that gratuity accrues only when an employee leaves after completing 5 years of service. (the case of death of employee is different wherein the dependent will get gratuity even if the deceased employee had not put in sufficient years of service) As such one who has worked for 4 years and 6 months will not get gratuity. For the calculation of the amount of gratuity fraction of a year in excess of six months will be counted as one year. That means if one has 5 years and seven months service the fraction of the year, that is, 7 months will be counted as one year as the fraction exceeds six months and therefore he will get gratuity for 6 years even though he had worked only for 5 years + 7 months) 5 years and six months will not take 6 years gratuity whereas 5 years, 6 months and one day will attract 6 years gratuity. However, if you see the things practically, law is not against any thing which allows any employee benefited and therefore, no body will question an employer's action of giving 6 years gratuity to one who had worked exactly for 5 years and six months. Similarly, if the employer thinks that an employee who had worked for 4 years and six months be allowed gratuity, he can go ahead with his good decision. Regards, Madhu.T.K