When can employee avail Gratuity money? EXPLAINED in brief
As far as gratuity is concerned, it depends on your relationship with the company. If you extended your continuous services for 5 years, you are entitled to get gratuity.
Gratuity is an important part of the salary system for any employee. It adds to the money that is available to them and can become quite a large sum over the years. However, considering this is an age where employees like to job-hop frequently, they do not pay too much attention to it. While changing jobs, they should know exactly when their Gratuity money can be withdrawn.
Under the Gratuity Act, employees who have worked for at least five years with their current employer will be eligible to avail this benefit. Otherwise, those who pass away or are rendered disabled due to accident or illness, are entitled to get this monetary facility. Since most of us face confusion regarding gratuity, Zee Business talked to Tax expert Manish Gupta to provide answers to your questions. The tax expert will solve your doubts about gratuity.
Gupta said that employees need to have continuous working period to avail gratuity. While working at any company, if they take leave then also it would be considered the continuation of their service.
As far as gratuity is concerned, it depends on your relationship with the company. If you extended your continuous services for 5 years, you are entitled to get gratuity, he added.
Gratuity Rule For Wage Worker
Putting a direct question to Gupta was one Rohit Vaid from Kolkata, who asked what are the rules of gratuity for the daily wage worker? If a daily wage workers less than 240 days in a year, will he be entitled to gratuity? Is the contract period not considered for gratuity? He did internship for one year and 9 months, will he get gratuity?
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Answering Rohit, the tax expert told him that you need to work at least 240 days then only one year of your service will be calculated, but if you have less than 240 days, it will not be considered continuous service. For mines, companies working less than 6 days a week have separate provision of working days. For such companies, it is necessary to work for at least 190 days in a year. In case of any other company, this condition is applicable for 240 days.
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