Eligibility begins after one completed year
Traditional federal gratuity generally requires at least one year of continuous service before a partial additional year is included.
Use dates, not rough months
Calculate calendar service from the official start date through the contract end date and remove qualifying unpaid absence where required.
Apply the correct band
A partial year within the first five years uses the 21-day annual band; a partial year after five years uses the 30-day band.
Keep rounding transparent
Retain precision in the service fraction and round only the displayed currency amount. Avoid rounding eleven months to one year.
Questions to ask HR or payroll
- What exact dates define service?
- Were any days excluded?
- Which gratuity band applies to the partial year?
- Did the employer round the service period?
- Can the service fraction be shown?
Frequently asked questions
Is a six-month partial year counted?
After one completed eligible year, the additional fraction is generally calculated proportionally under the federal traditional formula.
Are unpaid absences included?
Unpaid absence is excluded from service for federal gratuity calculation.
Should service be rounded to completed months?
Use the applicable date method and show the assumption rather than silently rounding.
Official sources used
Rules can change and facts can be disputed. Review the source that applies to your jurisdiction and current circumstances.