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

GauravHRCareer
If person retires at 58 age. (Entitled to pf, pension). But if he continues as Extension upto age of 65 years. Will he get Gratuity upto 65 years or upto 58 only.? (That person is fighting for 65 year gratuity.)
vmlakshminarayanan
Hi,

Gratuity to be paid till the end of his last working day with the company. After 58 years if separate contract is entered with the employee and if the employee completed contineous 5 years in the extension period then till last working day gratuity to be paid. Age will not be a criteria
GauravHRCareer
Ok. Means he is entitled for 2 Gratuity. One for regular service (upto 58 years). And second for extension period (up to 65 years), correct sir?
vmlakshminarayanan
Hi

It depends. After 58 years if he got retired and relieved then till retirement date one gratuity and for subsequent contract period subject to completion of contineous 5 years another gratuity.
KK!HR
The employee is right and has a legally valid claim for gratuity treating the continuous service till attaining 65 years of age. As the employee was granted an extension of service, it means continuous service and so the employee is entiled to gratuity reckoning the ful service period upto the termination of service, in this case 65 years of age.
umakanthan53
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 the industrial employees stand to get gratuity does not prescribe any age limit on retirement.
Therefore, when an employee is permitted by his 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 not withstanding the fact of being no member of the EPS.
If the employee is permitted to retire on attaining the age of superannuation, his gratuity should be paid forthwith.
If his 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.
GauravHRCareer
Thank you All for your help. I Really appreciate your time and consideration.
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