Confused about Gratuity

Dear Friends

I am working in a manufacturing company with total of around 200 staff at the corporate office only. Out of them only 40 are registerred and rest are paid in cash. For which they are not on the pay roll, they are paid on vouchers.

Now our director wants all the staff to be enrolled in the company's roll. For which I need to make the break up of salary. Our consultant says PF, ESI and Gratuity are statutory and we are bound to pay.

I got the funda of PF and ESI. but I am confused abt Gratuity. I have the idea that if the employee has not completed 5 consecutive years of services in the company he is not eligible for gratuity, and it is paid at the time of separation.

But here what happenning is, I am been told to show the gratuity in the breakup, as an additional cost to company which we are bearing for the employee. That means even an employee has worked for 6months from his joining, he will be eligible for gratuity, butthe amount will be paid once he leaves after 5yrs. And in this forum also I have not seen a single salary break-up where the companies give gratuity from the Day1.

Hence kindly suggest me, am I right in doing so.

Help me please.....


Regards.
Smita

Help me Friends......
Please

Dear Friend,

The calculation of gratuity is as below:-

Monthly rate of wage last drawn (basic) / 26 days (consider as month) X 15 payable days X No. of Years


Note:- Gratuity is payable only after completion of successful 5 years.

Hope this will meet your requirements

Regards

Pankaj Chandan