Dear Concerned,

I have a query on Gratuity. An employee's service in our organization is of 8 years. In the last year, his present days are less than 240 days (including Sundays) but has worked for more than 6 months. Now, please let me know, is he eligible for a gratuity of 7 years or 8 years?

Waiting for your revert.

Thanks and regards,
Pooja

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

If Working Days is Below 240 in any year,Then Gratuity will not calculate for That Particular year. In you case,7 Years Gratuity will paid.
From India, Faridabad
Acknowledge(0)
Amend(0)

In respect of daily-rated employees, this is okay. However, for regular employees, you have to consider paid days as well when calculating 240 days. Additionally, if there have been any loss of pay leave days, you should also take that into account, provided the LOPs are approved as leaves and not marked as absent without intimation, which may result in disciplinary action against the employee.

Now, if the last year of service is less than 12 months, and even if the employee has worked for more than 6 months, they should still be eligible for gratuity for 8 years.

Madhu.T.K

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

Ms. Pooja,

As per the details provided above, please review the suggestions given by Mr. TK. When inquiring, remember to include the dates of joining and leaving for the individual in question. If you have doubts regarding the payment of gratuity for the last year, be sure to explain how you determined that the number of working/paid days is less than 240.

It is essential to provide accurate information to receive the appropriate response. Thank you.

From India
Acknowledge(0)
Amend(0)

Mr Madhu is right.Even days of absence not ordered as break in service under sec 2A of Payment of Gratuity Act is considered as continuous service.
From India, Thiruvananthapuram
Acknowledge(0)
Amend(0)

Dear Sir,

While calculating the gratuity payment, for a fraction of service in the last year, if the service is more than 6 months, it will be treated as one year. Therefore, if the service is 7 years and more than 6 months, the service for gratuity will be considered as 8 years for the calculation of the gratuity payment.

Thank you.

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

D Gurumurthy has rightly mentioned that if any employee's joining date to exit date is 7 years and over 6 months, it is treated as 8 years of service. 240 days of a year are calculated for those employees whose joining date to exit date is less than 5 years of continuous service. For example, if an employee has worked for 4 years and over 6 months but not over 240 days, then the said employee is not entitled to Gratuity, to the best of my knowledge.
From India, Ahmadabad
Acknowledge(0)
Amend(0)

Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.