Gratuity Law Rumor: Have You Heard About the New Two-Year Rule?

There is a rumour in our office that the Gratuity Law has been changed. According to the new law, instead of five years, employees with two or more than two years of service are entitled to gratuity. However, I am unable to confirm this news from anywhere. Please let me know if any of you have also heard something similar. If yes, then please educate me on this.

With regards,
Ashish

Hi Ashish,

There is no such amendment in the Payment of Gratuity Act, 1971. The eligibility to claim the gratuity is still 05 years of service with the company.

Regards,
Prasad