As per the Gratuity Act, 1972, companies with more than 10 employees in the last financial year should pay gratuity to all permanent Employees who have spent >=5 years at the company.
Eligibility
Employees who have spent >= 5 continuous years with the same org are eligible for gratuity. Technically, if the employee has spent >= 240 days in your 5th year (or a total of ~4 years and 8 months), this will be rounded up to 5 years, and the employee will be eligible for gratuity.
An Employee who suffers from a disability or critical illness is eligible for gratuity even before completion of 5 years, at nilenso’s discretion.
In order for Employees and Partners to be treated equally, we have decided to pay gratuity to Partners as well.
Calculation of gratuity
When will gratuity be paid
Gratuity will be paid at the time of resignation. Gratuity may be forfeited if the Employee is terminated for committing an offence, an act of violence, fraud, or breach of trust.