Is there any amendment in Gratuity rules applicable from 2023 onwards such that the employee will be eligible for Gratuity even he/she does work for one day?
The last amendment in the Payment of Gratuity Act, 1972 was carried out in 2018 increasing the threshold limit from 10 to 20 lacs. In India, Gratuity is eligible after continuous service of 5 years while in the GCC gratuity is payable after one year of service as per ILO guidelines.
One staffing agency told me that now employees will be paid even if they work for one day. Is there such a thing?
That is applicable for EPFO only, any employee work for 1day also we have to calculate. But as per my knowledge Gratuity is applicable only on completion of 5years service. And many company’s calculate that for Budget purpose also. You can ask the staffing agency for a document evidence!
I am also requesting any eligibility criteria for lesser period work such as 1/2/3/4 years of service in one organization.
is there any age limit for Gratuity payout. We have an employee who is completing 58 years and we have not published retirement age anywhere?
Hi, An employee is eligible for gratuity from the date of joining in an organization. That is why companies calculate it and pass the provisional entries in books. If an employee leaves before completing 5 years, the corresponding value will be adjusted and passed entries based on actuarial valuation report. But if an employee completes 5 years or more, the amount from his DOJ will be paid to him during resignation or retirement. 20L is the capping for gratuity amount. Hope this clarifies.
There is no age limit for gratuity.
it’s 5 year…if he complete 5 year in organisation then he is eligible for Gratuity.