Gratuity Rule: Gratuity is a financial benefit given by the company to employees who have served in the company for a long time. It is a type of reward that expresses respect for the honesty and dedication of the employee. The amount of gratuity is determined based on the employee's last salary and the number of years spent in the company. It is provided to the employee or his nominee after retirement, resignation, or death.

Gratuity benefits are available to those employees who have been working in the company for 5 years. Understand it like this that if you joined a company in the year 2020 and change the company after completion of 5 years, then gratuity money is given by the company. On the other hand, if you change the company in 2-3 years, then you will not get the benefit of gratuity.

Many employees have a question regarding gratuity that whether the notice period is also counted in it? Come, we will give you the correct answer to this question below.

Does the notice period also count-
According to the Gratuity Rule, the notice period is also counted in the job period. Since the employee continues to give his services to the company during the notice period, if an employee resigns after working for 4 years and 10 months and completes the notice period of 2 months, then his total service period will be considered as 5 years. On this basis, he will be paid a gratuity.

Gratuity is also available for less than 5 years-

In many situations, the employee gets the benefit of gratuity even if the period is less than 5 years. By the way, according to the rules, if the employee has worked for 4 years and 8 months, then he is entitled to gratuity.

According to the Gratuity Act 1972, if an employee dies during work or becomes disabled, then they get the benefit of gratuity. In such unfortunate situations, the condition of 5 years of service does not apply. In this case, the gratuity amount is given to the person nominated by the employee. While joining the job, the company makes the employee fill Form F, in which the employee mentions his nominee for gratuity.

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