Gratuity Eligibility: Five-Year Rule and Exceptions

Five years is the general rule, not a universal answer

The operative framework generally requires at least five years of continuous service for ordinary qualifying events such as superannuation, retirement, resignation or termination. Whether service is continuous and whether an event qualifies depend on facts the calculator does not collect.

Death and disablement do not carry the general five-year condition

The five-year condition is not necessary where termination of employment is due to death or disablement. This is a legal boundary, not a separate death or disablement calculation in ArthaSiddhi.

Fixed-term employees also have special current eligibility and pro-rata treatment. Ministry guidance identifies one year of service under the fixed-term contract; the ordinary calculator does not model that special case.

The calculator does not determine eligibility

Entering wage and service produces an amount under the ordinary monthly-rated model. It does not confirm continuous service, a qualifying event, death or disablement facts, fixed-term status, employee category, coverage or forfeiture.

Use Gratuity Explained for scope, How Gratuity Is Calculated for arithmetic, and the Gratuity Calculator only for an estimate.

Individual cases require current facts and applicable terms

This guide is general information, not individualized employment-law advice. Applicable statutory provisions, official guidance, service records and any award, agreement or contract should be checked for the actual case.