Gratuity Eligibility Confusion: Is It 4 Years and 10 Months or More?

What is the gratuity eligibility period - is it 4 years and 10 months or 4 years, 10 months, and 20 days? Also, is gratuity calculated based on your date of resignation or the date of relieving? Please clarify this for me.

Regards,
Amrutha V Holla

Dear Amrutha,

It's a good question. Referring to section 2A of the Payment of Gratuity Act, 1972, which states the definition of "continuous service," it seems the relieving or resignation date doesn't matter. What matters is the date on which the employee actually completed five years or 240 days in the fifth year. If he's on the job and working, he should be considered for the payment of gratuity.

You may also refer to another link where we discussed the subject topic in detail: https://www.citehr.com/457551-gratui...cable-not.html

Warm regards,

Umesh Chaudhary
Regards

Hi Amrutha, Gratuity is calculated from the day of joining to the day of leaving. The resignation date doesn't count. Gratuity is calculated based on the last earned wages.

I have left the company without notice. I worked for 5 years and 3 months. My employer has not released the gratuity and superannuation of those employees who left the company as per their terms & conditions, and I received the relieving letter too. My friend says that it depends on the employer; it's their choice if they can hold the gratuity and superannuation. Is there any way to compel them to release the gratuity and superannuation? Please advise.

Regards,
Kumar N.