Gratuity Calculation Dilemma: Should Joining Date or PF Coverage Date Be Considered?

Greetings,

The company was initially not covered under PF for 10 years, and from 1992, it was covered under PF. When calculating Gratuity, what should the joining date be? The actual joining date or the date from PF coverage?

Thanks for your response.

Regards,
Santhosh

Dear Santhosh,

The applicability of Gratuity is independent coverage. Under this Act, the actual date of joining the organization will be considered, not the date of PF coverage.

For applicability of the Payment of Gratuity Act 1972, the only condition is that the establishment should have ten or more employees. The definition of an employee is broad and includes almost everyone regardless of salary. Therefore, the date of applicability of the Employees Provident Fund Act is irrelevant.

Dear,

These two are different enactments. For Gratuity, the actual date of joining shall be taken. PF membership has nothing to do with the payment of Gratuity.

Ak Malhotra

Sr. General Manager

Dharampal Satyapal Limited

Please suggest regarding the above query of gratuity eligibility for 4.8 years of service. If only 24 days are remaining instead of completing 5 years, is the person eligible for gratuity or not?