For permanent employees resigning or retiring voluntarily, the five-year minimum is mandatory. It means uninterrupted service with one employer, not cumulative years across companies. The company must have at least 10 employees for the Gratuity Act to apply.
However, if your company follows a 5-day workweek, you qualify after 4 years and 190 days of service. For 6-day workweeks, it’s 4 years and 240 days.
Do you need full 5 years of service for gratuity? Exceptions every employee should know
