Can You Get Gratuity After 4.9 Years of Service? Seeking Advice on Eligibility and Process

Hi,

Please let me know the following:

1) Is one eligible for getting Gratuity after 4.9 years of continuous service?
2) If yes, please let me know the procedure for applying for the same.

Looking forward to valuable input from your side.

Hi,

As per the Madras High Court order, those who have completed 4 years and 240 days are eligible for gratuity.

Regards,
N.S. Bhanuprakasha

If, in the 5th year, the concerned employee has completed 240 days, even then, he would be eligible for gratuity.

The Payment of Gratuity Act, 1972 makes it mandatory for all employers with more than 10 employees to give them gratuity.

Employees, as defined here, are the ones hired on company payrolls. Trainees are not eligible, and gratuity is paid based on the employee's basic plus dearness allowance if any.

You become entitled to gratuity on resignation or retirement after five years or more of service.

In the case of an employee's death, the heir is entitled to the gratuity immediately, and the entire amount is tax-exempt.

The employer could also offer you an extra gratuity by deducting a portion of your salary as the cost to the company. When joining the organization, ask your employer for all the details concerning gratuity and how to calculate it.

To meet its liabilities towards gratuity, a company either funds the money from its pocket or opens a trust and puts in money for the gratuity fund. This fund is then managed either by an insurer or an actuarial company.

Revised Gratuity is Rs. 3.5 L to 10 L.

Hi,

As per the Chennai High Court judgment, if a person has completed continuous service of four years and in the fifth year serves for 240 days, and then resigns from the services, they are eligible for gratuity. If the employee does not complete five years of service and passes away or is retrenched, we are required to pay gratuity for the services they rendered.

R. Eagambaram

Hi,

Yes, exactly in the 5th year, continuous completion of 240 days can make you eligible for gratuity. I am an example of the same. I received gratuity in 2005 when I completed a service of exactly 4 years and 9 months.

Simply get and fill out the form, then ask your employer to submit it properly. You will receive the gratuity amount within 2-3 months in your bank account (the account described in the form). Please ensure that the bank account you described in the gratuity form is open and active.

Regards,
Gaurav Arora

Hi,

As per the Act, one can be eligible for gratuity after completing 5 years of continuous service, but even 4.5 years are counted as 5 years of service. I hope this clarifies it for you.

Hi,

Any employee who has worked for 4 years and 8 months is eligible for gratuity. The process involves sending a letter to LIC with information about the date of joining, date of leaving, last basic salary, etc. After that, they will send you the cheque by post.

Thanks

Dear,

As per the Payment of Gratuity Act, 5 years of service are mandatory to become eligible for gratuity. If the Madras High Court has given a judgment for 4 years and 240 days in the fifth year, it still cannot become a law. Therefore, based on that judgment, we cannot say that eligibility to receive gratuity is reduced from 5 years. So, dear, eligibility cannot be decided by one judgment, and it will remain five years.

Dear friends,

A query has been posted, but many have started replying even without knowing the exact answers. Later, we got an answer from Devi. If an expert is not answering a question, or until we get a correct answer from an expert, members from this forum can mislead newcomers, which I think is a dangerous situation. Throwing this thought out for a debate.

Regards,
PT Ramesan

Although the eligibility for gratuity is typically 5 years, in your case, you have completed 4.9 years. Considering you have completed 4 full years of service, in the 5th year, you need 240 days of service to be counted as a full year of service.

Though eligibility for gratuity is 5 years, you have completed 4.9 years. In your case, you have completed 5 years because you have 4 complete years of service, and in the 5th year, you need 240 days of service to be taken as a full year of service.

Dear Mr. Rameshan,

The information about Devi is correct, but I do not agree with your remarks that all other answers are wrong. Even though all have discussed the issue related to 4.9 years, I did not find any time or duration-related answer in Devi's post. This does not provide the exact answer to the specific question.

This is my opinion, so I have posted it. Please do not mind.

Regards,
Gaurav

He/she is eligible for gratuity after completing 4 years and nine months subject to 240 days in the 5th year.

Regards,
Ramana Reddy
Head-HR

Hi, Good Morning to All.

A person is eligible for gratuity after the completion of continuous five years of service. As per the interpretation of the Madras High Court, if any worker has completed continuously 4 years and 240 working days, the employer may offer gratuity but it is not compulsory.