Is there any link between PF service and Gratuity? If we do not have continuous service in PF, are we still eligible for gratuity? Should we have completed 5 years of service in one company only to be eligible for Gratuity?
From India, Hyderabad
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3From India, Hyderabad
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Dear Krishna, generally, Employees' Provident Fund under the EPF Act, 1952, and Gratuity under the Payment of Gratuity Act, 1972 are the statutory social security benefits available to salaried employees employed in industries in India upon the termination of employment. However, they are distinctly different from each other in terms of applicability, coverage, method of institution of funds for distribution, computation of the benefit, and its method of payment. Thus, they are independent of each other; the eligibility for one does not have any impact on the other.
If a person gets employed in any establishment to which the PG Act, 1972 is applicable under section 1(3) and when he completes not less than 5 years of continuous service in the same establishment, he is eligible for gratuity under the Act irrespective of his nature of employment or the wages/salary received by him, notwithstanding the applicability of the EPF Act to the establishment or the coverage of the scheme in respect of him.
From India, Salem
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If a person gets employed in any establishment to which the PG Act, 1972 is applicable under section 1(3) and when he completes not less than 5 years of continuous service in the same establishment, he is eligible for gratuity under the Act irrespective of his nature of employment or the wages/salary received by him, notwithstanding the applicability of the EPF Act to the establishment or the coverage of the scheme in respect of him.
From India, Salem
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf