No Tags Found!

Eligibility for Gratuity Payment

In the Gratuity Scheme, gratuity shall be paid after 5 years of service, and any service period above 6 months shall be considered as one complete year. Therefore, if an employee is leaving a company after completing 4 years and 7 months of service, the question arises whether he/she will be eligible for gratuity or not.

From India, Pune
Acknowledge(0)
Amend(0)

No, the employee is not eligible for gratuity. As per gratuity rules, only a person who completes five years of service is eligible for gratuity. Since the above-mentioned employee has only completed 4 years and 7 months, he is not eligible. He has to wait 5 more months to receive the gratuity.
From India, Hyderabad
Acknowledge(2)
KK
MN
Amend(0)

According to the Payment of Gratuity Act 1972 under Sections 2(a), 2(b), 2(c), 2(e), and 2A - 'Continuous service' - Qualifying period of service by an employee - Entitlement of Gratuity - An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year' as stipulated by section 2A of the Act. Thus, an employee who has put in service for 10 months and 18 days for the fifth year subsequent to the first 4 years should be deemed to have completed continuous service of five years. His claim for gratuity is tenable.

Eligibility

4 Years + 10 Months and 18 Days = 5 Years

Regards

From India, Rajamahendri
Acknowledge(1)
Amend(0)

If an employee completed his 4 years in service and have completed 240 days in the 5th year then he is entitled for 5 years gratuity.
From India, Rajamahendri
Acknowledge(0)
Amend(0)

Yes, if an employee completes his service 4 years 240 days then he is eligible for gratuity. Regards, Ram
From India, Hyderabad
Acknowledge(1)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.