Are you eligible for gratuity? The Payment of Gratuity Act has nuanced eligibility rules. Standard rule: 5+ years continuous service. Exception: 4 years + 240 days qualifies (Madras HC ruling, supported by SC). Special cases: death, permanent disability, and termination due to closure all qualify regardless of service length. Enter your tenure and exit reason - the calculator returns yes/no with the legal basis.
When to use this
Use before resigning to know if you'll get gratuity, after termination to verify your entitlement, in HR discussions about whether a specific employee qualifies, planning the exit date to cross the eligibility threshold, computing what's owed to nominees in death-in-service cases.
Frequently Asked Questions
What counts as continuous service?
Service without break exceeding 6 months, plus periods of authorized leave (sick / earned / maternity), training, layoff with consent, and lock-out. Strike (without consent), unauthorized absence, and termination breaks continuity. The calculator asks about your service pattern to apply this correctly.
Do contract employees get gratuity?
Yes if they're directly on the company's payroll and have completed 5 years (or 4y+240d) continuous service. Contract employees through a staffing agency (third-party payroll) get gratuity from the staffing agency, not the client company - check your appointment letter for who's the legal employer.
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