Understanding Gratuity Eligibility: Is 3 Years of Service Always Required?

Hi All,

In this site, I have read that for 5 years of gratuity, an employee is eligible to receive gratuity if he/she completes 4 years and 9 months. However, in our company, an employee receives gratuity after completing 3 years of service.

So, what does the rule state? Does an employee have to complete a full 3 years to be eligible for gratuity, or is it possible to qualify with, for example, 2 years and 9 months?

Thank you.

Eligibility for Gratuity

It is 5 years of service to be eligible for gratuity. If your company pays after 3 years, it is well and good.

Dear Akilis,

To be eligible for gratuity, an employee must complete five years of continuous service with a company. However, many companies provide gratuity for service periods below the statutory requirement of five years. Your company, for example, provides it for three years, which is a highly positive practice.

However, this cannot be compared to the statutory period, where you get gratuity even if you have completed four years and nine months. In the case of your company, it will be the full period of three years.

Regards,
Gaurang