Gratuity Eligibility After Opting Out of PF: What Happens After 10 Years?

I am working in a construction company for the past 3 years. During my joining, the HR team asked me if I could opt for PF. I requested an exemption from PF deduction in my salary. Now, my question is whether I am eligible for gratuity after working in this company for 10 years or more.

Membership of EPF/EPS is different from eligibility for the payment of gratuity, so they are not interlinked.

Thanks & Regards,
Sumit Kumar Saxena

Both are different acts. You are eligible for gratuity as per rules. However, you will not be eligible for a pension, which is in contrast to the gratuity deposited in LIC.

Regards

A person who has completed five years in an organization is eligible for Gratuity. Please let me know if you need any further assistance.

The members have rightly pointed out that PF and Gratuity are governed under different Acts and Rules, and as such, one should not get confused by relating one to another. Though I agree that both the Acts, i.e., EPF & MP Act and Payment of Gratuity Act, are social security legislation and have been enacted primarily to provide relief to the working class.

Gratuity Eligibility

Gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years:
- (a) on his superannuation
- (b) on his retirement or resignation
- (c) on his death or disablement due to accident or disease.

It is further provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

In view of this and subject to the fulfillment of other conditions, I am of the opinion that you will certainly be eligible for the payment of gratuity.

Regards,
BS Kalsi