Am I Eligible for Gratuity After 4 Years and 7 Months of Service? Let's Discuss

Eligibility for Gratuity Payment

In the Gratuity Scheme, gratuity shall be paid after 5 years of service, and any service period above 6 months shall be considered as one complete year. Therefore, if an employee is leaving a company after completing 4 years and 7 months of service, the question arises whether he/she will be eligible for gratuity or not.

No, the employee is not eligible for gratuity. As per gratuity rules, only a person who completes five years of service is eligible for gratuity. Since the above-mentioned employee has only completed 4 years and 7 months, he is not eligible. He has to wait 5 more months to receive the gratuity.

According to the Payment of Gratuity Act 1972 under Sections 2(a), 2(b), 2(c), 2(e), and 2A - 'Continuous service' - Qualifying period of service by an employee - Entitlement of Gratuity - An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year' as stipulated by section 2A of the Act. Thus, an employee who has put in service for 10 months and 18 days for the fifth year subsequent to the first 4 years should be deemed to have completed continuous service of five years. His claim for gratuity is tenable.

Eligibility

4 Years + 10 Months and 18 Days = 5 Years

Regards

If an employee completes his 4th year of service and has completed 240 days in the 5th year, then he is entitled to 5 years of gratuity.

Yes, if an employee completes their service for 4 years and 240 days, then they are eligible for gratuity.

Regards,
Ram