Gratuity rule

Gayatri Gayatri (Querist) 25 September 2013 This query is : Resolved
Dear Sir,

I heard that for all the software companies 4 years 8 months ( 4 years and 240 days in the 5th year)is the qualification/minimum period an employee has to serve to get gratuity.

Can some tell me

1) if any employee serves exactly 4 years 8 months is he going to get 75 days of basic pay as gratuity at the time of leaving service (15 days of basic pay for each of the 5 years)

2) Why is that qualification period is specifically kept as 4 years 8 months instead of complete 5 years ?

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Isaac Gabriel (Expert) 25 September 2013
Section 4 specifies the period,which runs
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned: Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period

Hope you will understand the concept for 4 years and 8 months

Gayatri Gayatri (Querist) 25 September 2013
Issac Gabriel Sir,

Is my understanding correct then "If an employee leaves his job after completion of 4 years and 8 months ( 4 years and 240 days in the 5th year) He will get gratuity of 75 days basic pay(15 days of basic pay for al1 the 5 years) ????