Is My 4 Years and 8 Months of Service Enough for Gratuity Eligibility? Seeking Advice!

Hi all, my query is regarding the gratuity being paid. I was employed with a reputed IT services organization and joined as a fresher on 21 Jan 2011. I left the organization on 5th Oct 2015. According to the calculation, I have completed 4 years, 8 months, and 15 days. However, my organization is telling me that I should have completed 4 years and 10 months to be eligible for gratuity. Is that really true? I have read on multiple blogs and forums, even on the CITE platform, that eligibility is 4 years and 8 months or 4 years and 240 days. Kindly advise.

P.S: I have been on the roll of the organization from day 1, and they have acknowledged the fact that I have been part of the organization for 4 years, 8 months, and 15 days.

In India, the Payment of Gratuity Act, 1972, governs the payment of gratuity to employees. According to the Act, an employee is eligible for gratuity after completing five years of continuous service. However, the Act defines a year of service as completing 240 days in a year.

In your case, you have completed 4 years, 8 months, and 15 days of service. While the Act specifies 5 years as the eligibility criteria, the provision of completing 240 days in a year can be crucial in determining eligibility.

To clarify your situation with your organization, you can refer them to the specific provisions of the Payment of Gratuity Act, 1972, which define the criteria for gratuity eligibility. It's essential to have a clear understanding of the legal requirements to ensure fair treatment for all employees.

If there are discrepancies in the interpretation of the Act between you and your organization, you may consider seeking guidance from legal experts or authorities to resolve the issue effectively.