Dear friend,
The age of the employee at the time of entry into the service of the establishment is not a criterion of eligibility for gratuity under the Payment of Gratuity Act,1972. On the contrary, it is the completion of the minimum qualifying length of continuous service of not less than 5 years on the date of termination of his employment other than death or disablement. As per the provisions of sec.2-A (2) of the Act, if on the day of termination of employment, the employee has completed 240 days or 190 days in the 5th year of his service depending on the type of the establishment, he should be deemed to have completed 5 years of continuous service in the establishment.
CTC, being an accounting tool of the employer to assess his annual overall cost of employment per employee, has no statutory force in the matter of settlement of any claim for statutory gratuity.