Question

When is an employee eligible for gratuity under the Payments of Gratuity Act, 1972?

a.

After three years of continuous service

b.

After four years of continuous service

c.

After five years of continuous service

d.

After six years of continuous service

Posted under IC 89 Management Accounting

Answer: (c).After five years of continuous service Explanation:An employee is eligible for 15 days of pay for each completed year of service on any of the specified situations like retirement, permanent total disablement during service, death during service, or resignation from service, after five years of continuous service.

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Q. When is an employee eligible for gratuity under the Payments of Gratuity Act, 1972?
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