Gratuity Eligibility: Does Working 4 Years and 9 Months Qualify for Benefits?

Hi, I have a doubt regarding gratuity. If an employee works for 4 years and 9 months, will he/she be eligible for gratuity or not? Also, is the notice period countable while calculating gratuity?

To claim a gratuity from the company, an employee needs to complete a minimum of 4 years and 240 days in the same company. Therefore, you are eligible for the gratuity benefit.

No, you are not eligible to receive any gratuity unless you complete 5 years.

Gratuity Calculation Considerations

Now, what you have cited—the 4 years and 240 days or half fraction yielding to more than 6 months—is only taken into consideration for the payment and calculation of gratuity.

240 days in the last year are only taken into consideration if you are in the jurisdiction of Tamil Nadu.

Employer's Discretion and Legal Binding

Now, it rests on the employer's wish. Some employers consider the 240 days in the last year, and some don't, as the verdict was given by the Madras High Court, and it's binding upon Tamil Nadu region employees. So legally, if you are not from the Tamil Nadu region, your employer can well decline to give you the gratuity benefits unless you complete 5 years of employment service.

Gratuity Calculation: Eligible Salary Components

Can you tell me what part of the salary is eligible for the payment of gratuity? Is it calculated on the CTC, i.e., Basic + HRA and other benefits provided by the employer, or is it based on Basic only?

Gratuity Payment: Days of Salary Payable

Also, please inform me about how many days' salary is payable as gratuity for one completed year. How many days' salary is payable after 10 years of service as gratuity? Please provide a detailed reply.

Gratuity Calculation Formula

The formula for calculating Gratuity is as follows:

The current (Basic + DA) / 26 * 15 * number of years.

Regards,