Confused About Gratuity Eligibility After 5 Years? Need Clarity on the 6-Month Rule!

Hi,

I was told that if I complete 180 days after the 5th year, I will be eligible for the 6th-year gratuity regardless of calendar days, i.e., if 6 months are not completed by the calendar but 180 days are completed, I am eligible. Now, they are saying the rules are for 6 calendar months. Can someone please confirm this, and if there is a link or document from the government detailing the same, kindly provide it to me.

Thanks,
Pankaj

If you have completed five years and more than six months, you will get six years of gratuity. This is counted not according to calendar days but from the date of joining. Therefore, if you have worked for 5 years, six months, and one day, then only will you get six years of gratuity.

Regards,
Madhu.T.K

Hi Madhu,

Thank you for getting back. However, 6 months from the date of joining will be based on calendar days, correct?

For example, if my joining date was the 9th of June and my last working day was the 8th of December, considering calendar days, it is not exactly 6 months. However, in terms of the number of days, it amounts to 183 days.

Could you please confirm this?

Thanks,
Pankaj

Hi Pankaj, in the above case, if you left the company on 9th December (after working hours only), then you will be eligible for 6 years of gratuity.

Since you have not worked for 'more than six months', you can get gratuity for five years only. On the other hand, if you had worked for at least one day, i.e., if your date of relieving was 9th December, you could have received one more year's gratuity.

Regards, Madhu.T.K

Gratuity Eligibility: Understanding the 4 Years and 240 Days Rule

There are several references to 4 years and 240 days being the minimum time required for gratuity eligibility. However, a clause in the gratuity law, while referring to continuous service, states: "one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week."

Now, for software companies that operate Monday to Friday, does it mean that it is sufficient to complete 4 years and 190 days to be eligible for gratuity? If not, to what establishments does the 190 days rule apply?

Eligibility for Gratuity in Mines and Superannuation Cases

For employees working below the ground in a mine or those who work less than six days a week, the parameter to decide continuous service is 190 days. Please refer to Section 2A of the Payment of Gratuity Act.

For superannuation cases, the same rule will be applicable, and one has to complete 5 years of service in order to be eligible for gratuity.

Regards,
Madhu.T.K

My joining date is 16-Nov-2009, and my last day in the company is 15-May-2015. Will I be eligible for 6 years of gratuity or 5 years only? Please let me know urgently. Thanks a lot!!

Your service is exactly 5 years and six months; therefore, you will receive gratuity for 5 years only. If your date of relieving is on the 16th of May, then it shall be "more than six months," and you will receive gratuity for 6 years.

Regards,
Madhu.T.K

Hi, my joining date is April 19, 2011, and I am still working there. If I leave that company, am I eligible for gratuity? Please confirm.