How many years for gratuity

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ET India Inc. ET Engage. ET Secure IT. Tax How to file ITR. ET Engage. ET Secure IT. You may soon be eligible for gratuity even without 5 years on the job. New rule coming? Rate Story. Font Size Abc Small. Abc Medium. Abc Large. ThinkStock Photos. With shorter job tenures increasingly becoming more common in India, the government is considering easing a key eligibility requirement for gratuity payment, Mint has reported.

Ask Money Today. Ask Money Today: Am I eligible for gratuity payment before completing 5 years of service? As per the Payment and Gratuity Act, an employee should render five years of continuous service with the existing employer to become eligible for gratuity. Latest Must Read Markets. Economy Corporate Markets. Infra Pharma Real Estate.

However, implementation of the same has been postponed till 1 October, and is expected to be delayed until the beginning of the next financial year.

The detailed guidelines and processes for the same are also expected to be revised. Under current rules, if an individual is in continuous service for 1 year or 6 months under the employer, he shall still be eligible to receive gratuity payout only if he for the said period, preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than days and 95 days, respectively in case of five-day work week in a company.

Since you have not worked for the company for at least four years and days, you will not be eligible to receive gratuity. Never miss a story! Stay connected and informed with Mint.

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