Understanding Gratuity: How Is My 8 Years and 4 Months of Service Calculated?

Hi, I have worked for 8 years and 4 months. How many years' worth of gratuity will I receive? What is the rounding logic of the service period in gratuity?

You will receive gratuity for 8 years. To understand the logic, please refer to section 4(2), which states that for every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee. This means that if an employee works for more than 6 months in a year, that year will be considered a full year for the payment of gratuity. Six months or less will be disregarded.

Thank you.

If an employer terminates the service of an employee due to prolonged absenteeism and this employee has completed 9 years of service before the termination, is the employee eligible for gratuity?

Thank you.

You are eligible to receive a gratuity payment for 8 years.

Thanks and Regards