Am I Eligible for EPF Withdrawal and Gratuity After 4 Years of Service?

I joined my organization on 07.01.2012 and wish to leave on 07.12.2016. I want to know whether I am eligible for EPF withdrawal and Gratuity! If yes, what is the quantum of withdrawal.

EPF is always the asset of the employee, who has every right to the fund, to transfer it to a new EPF account or withdraw it (at the age of 58).

Regarding gratuity, one has to check whether the establishment is liable to provide gratuity or not.

Understanding Gratuity Under the Payment of Gratuity Act 1972

Under Section 4 of the Payment of Gratuity Act 1972, gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years.

Termination of employment may result from:

- Superannuation
- Retirement
- Resignation
- Death
- Disablement due to accident/disease

As held in the case of Darshan Engineering Works vs. Controlling Authority, where an employee continues to work after superannuation, they will be entitled to gratuity for the entire period and not only up to their superannuation.

According to the explanation to Section 4(1), disablement means such disablement that incapacitates an employee from the work which they were capable of performing before the accident or disease resulting in such disablement. Under Section 4(4), if an employee continues in their current employment after disablement at reduced wages, the gratuity for the period up to their disablement is to be calculated at such wages as they were being paid before disablement. The gratuity for the period after disablement is to be calculated on such reduced wages.

As per provision 1 to Section 4(1), the requirement of continuous service of five years shall not be necessary when the termination of employment occurs due to death or disablement. In the case of death, the gratuity amount will be paid to the nominee. If no nomination was made, gratuity shall be paid to the heir. If the nominee or heir is a minor, then the gratuity amount shall be submitted to the controlling authority. The minor can use this fund when they attain majority.

Definition of Continuous Service

Continuous service is defined under Section 2-A as a period of uninterrupted service, including service that may be interrupted due to:

- Sickness
- Accident
- Leave
- Layoff
- Strike
- Lockout
- Cessation of work not due to any fault of the employees
- Absence from duty without leave (not being absence in respect of which an order treating the action as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment).

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Yes, you are eligible for EPF and Gratuity. For the quantum of withdrawal of EPF, please check your PF statement. For gratuity, you have to do the calculation or provide the forum with your salary details. Please be informed that you are short by one month for the completion of five years. However, if the company agrees on the judgment of four years and 240 days, that may be considered.

My current basic is Rs. 18,500 and DA is 114.5%. I joined this esteemed organization on 07.01.2012. I plan to resign on 7th December 2016. This is a PSU. What is the quantum of gratuity I can get? It is said that PF contribution, if withdrawn before 5 years, is liable to TDS. So, will my job tenure in the case of EPF also attract TDS?

Is 5 years of continuous service the same for EPF and Payment of Gratuity?

In most cases, yes, 5 years of continuous service is a common requirement for both EPF (Employee Provident Fund) and the Payment of Gratuity. Employees who have completed 5 years of continuous service are typically eligible for both EPF benefits and gratuity payments. However, it is essential to check the specific rules and regulations of your organization or country to confirm this requirement.