Gratuity after superannuation - Will he get Gratuity upto 65 years or upto 58 only?

If a person retires at the age of 58, they are entitled to PF and pension. However, if they continue working through an extension until the age of 65, the question arises: will they receive gratuity up to the age of 65 or only until the age of 58? (The individual in question is advocating for gratuity up to the age of 65.)

Hi,

Gratuity is to be paid until the end of the employee's last working day with the company. If, after 58 years, a separate contract is entered into with the employee and the employee completes continuous 5 years in the extension period, then gratuity is to be paid until the last working day. Age will not be a criterion.

Ok. Does this mean he is entitled to 2 gratuities? One for regular service (up to 58 years) and the second for the extension period (up to 65 years), is that correct, sir?

Hi,

It depends. After 58 years, if he gets retired and relieved, then until the retirement date, one gratuity is applicable. For the subsequent contract period, subject to completion of continuous 5 years, another gratuity would be provided.

The employee is right and has a legally valid claim for gratuity treating the continuous service until attaining 65 years of age. As the employee was granted an extension of service, it means continuous service. Therefore, the employee is entitled to gratuity reckoning the full service period up to the termination of service, in this case, 65 years of age.

Dear Gaurav,

Pensionable age with associated conditions has been prescribed under the Employee Pension Scheme, whereas the age for retirement on superannuation is fixed under the contract of employment or service regulations. The Payment of Gratuity Act, 1972, under which industrial employees stand to get gratuity, does not prescribe any age limit on retirement.

Therefore, when an employee is permitted by their employer to continue in service beyond the age of superannuation by means of extension or under a fresh contract of employment, for the purpose of gratuity, the entire service has to be taken notwithstanding the fact of being no member of the EPS.

If the employee is permitted to retire on attaining the age of superannuation, their gratuity should be paid forthwith. If their service is continued by means of extension, the extended period should also be counted for gratuity, taking the entire service as a single continuous spell of employment in the same establishment.

Thank you all for your help. I really appreciate your time and consideration.