Is 4 years and 7 months eligible for gratuity?
- Posted:29th January, 2025
- Updated:29th January, 2025
No, an employee is eligible for gratuity only after completing at least 5 years of continuous service with an organisation, without any break.
As per Section 4(1) of The Payment of Gratuity Act, 1971, gratuity becomes payable when the employee's employment is terminated in the following situations:
- When the employee retires after reaching superannuation age.
- When the employee resigns or retires voluntarily after completing at least 5 years of service.
- If the employee dies or becomes disabled due to an accident or disease while in service after completing at least 5 years.
In this case, the employee has worked for only 4 years and 7 months. This is less than 5 years of continuous service per the Gratuity Act. So, unfortunately, this employee is not eligible for any gratuity payment when leaving the organisation.
The eligibility criteria are clearly defined in law to ensure standardised application across organisations.
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