After completing 5 years of service in any company, the employee becomes eligible to receive gratuity. This rule is in line with ‘Gratuity Payment Rules 1972’. However, many employees are not aware that if they leave the job before completing 5 years of service in the company, they are also entitled to gratuity. In this, it is necessary for employees to complete a certain time period. If you get an offer from another company and you cannot just go because of gratuity, then know how you will be eligible for gratuity in 4 years?
Gratuity will be available in 4 years 240 days
Let us tell you that to get gratuity, employees do not need to serve the company up to 5 years. Actually, an employee is eligible for gratuity only when he works more than 4 years and 240 days in the company. Suppose, an employee joins the company on 1 January 2021, if he leaves the job after 29 August 2025, he is entitled to get gratuity. Because by that date, the employee must have completed 4 years and 240 days of service. For this, the employee will not have to wait for the completion of 5 years by 1 January 2026.
After working, you do not get gratuity after working?
According to media reports, 240 days are equal to 7.89 months. For each employee, it should be kept in mind that his term should be 4 years and 8 months. Only then will they be eligible for gratuity. Employees who have served less than 4 years and 240 days will not get gratuity. However, 5 years of service is not mandatory even in the event of employee’s death or disability.
What is gratuity?
According to the Gratuity Payment Act, gratuity is the amount that a company gives any employee in exchange for its work. This amount is made up of the employee’s salary, dearness allowance and commission. To get this benefit, employees will have to work in the same company for at least 5 years or 4 years and 240 days.
