Am I Eligible for Gratuity After 4 Years and 240 Days Without PF Deductions?

I have been working for a private company for the past 4 and a half years. Am I eligible for Gratuity after completing 4 years and 240 days? The reason I have this doubt is that I never had PF deduction from my salary. Please advise. When I joined the organization, the HR of this company told me that I would not get PF as my salary crossed more than ₹10,000. Kindly advise me on whether I am eligible for Gratuity after completing 5 years in this organization.

Thanks in advance.

Regards,
Senthil.V

For your knowledge, gratuity is not affected by PF. Yes, surely you will get gratuity if you complete your continuous service of 4 years + 10 months and 18 days of the 5th year.

Yes, as per the latest Supreme Court ruling on gratuity, you will be eligible for gratuity after completion of 4 years and 240 days.

Arun Singhal

No, you are not eligible for gratuity. The time limit for this is 5 years, and the PF limit is 6500/-. If somebody is getting a salary below 6500, they are eligible for PF. If their salary crosses 6500 and goes above, they are still eligible for the same, regardless of the salary amount.

Eligibility for Gratuity Payment

A person is eligible to receive gratuity only after completing 5 years (except in the case of death or disablement) in the organization. Four years and 240 days do not meet the eligibility criteria. In the event of death, if an employee has worked even for one day, we are required to pay gratuity assuming that the deceased employee would have continued their service for 5 years.

Section 4 of the Payment of Gratuity Act, 1972 clearly states that "Gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years:

a) on superannuation,
b) on retirement or resignation, or
c) on death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of employment is due to death or disablement."

If you have the recent ruling of the Hon'ble Supreme Court judgment, please do share it with the team.

Regards,
San

Eligibility for Gratuity Without PF Membership

PF membership is not compulsory for getting gratuity. You will be eligible for gratuity after completing 5 years in this organization.

Even in my organization, we don't have PF or ESI benefits. Is it possible to avail employee benefits like Gratuity, Maternity, and Paternity benefits? Or are these benefits discriminated against by the management? Waiting for your reply.

Regards

Dear Friends,

This is regarding the minimum period to be served to qualify for gratuity. According to the High Court of Madras Judgment, it is 4 years and 240 days of continuous service. A copy of the same has been attached.

Regards,

P. Mohan Gandhi

You are right, Moahn. The Madras HC Judgment is attached. Thanks a lot.

Hence, a person working (continuous service) for 4 years and 240 days is eligible to get Gratuity.

San