Dear All,
As per the rule we get the gratuity benefit if we should work alteast 5 or more than 5 years for the company. Presently I am working with a Mumbai based company where gratuity is considered as part of CTC. I have just recently join the firm as about 6 months back.
If I leave the job after one or two years can I claim for the gratuity amount, as it considered as Annual Benefit in my CTC sheet.
Please suggest.
S.K.
From India, Mumbai
As per the rule we get the gratuity benefit if we should work alteast 5 or more than 5 years for the company. Presently I am working with a Mumbai based company where gratuity is considered as part of CTC. I have just recently join the firm as about 6 months back.
If I leave the job after one or two years can I claim for the gratuity amount, as it considered as Annual Benefit in my CTC sheet.
Please suggest.
S.K.
From India, Mumbai
Thanks for the reply.
But I would like to know what happens to the amount that has been showed in CTC as annual benefit, which the company keep aside ? Does the amount goes to govt. or to the company itself.
S.K.
From India, Mumbai
But I would like to know what happens to the amount that has been showed in CTC as annual benefit, which the company keep aside ? Does the amount goes to govt. or to the company itself.
S.K.
From India, Mumbai
Well, as far as i know the amount which is being deducted from is given to you only in terms of Special Allowlance or in any other form.
From India, Delhi
44From India, Delhi
Hi !
Many organisations include gratuity as part of ctc. Here, the company contributes in the group gratuity schemes regularly.
In case an employee leaves before completion of 5 continuous years, the company pays the amount payable as Exgratia in the full and final.
I have seen this practices adopted in my organisation also.
Ultimately it depends on approach of employer.
- Hiten
From India, New Delhi
Many organisations include gratuity as part of ctc. Here, the company contributes in the group gratuity schemes regularly.
In case an employee leaves before completion of 5 continuous years, the company pays the amount payable as Exgratia in the full and final.
I have seen this practices adopted in my organisation also.
Ultimately it depends on approach of employer.
- Hiten
From India, New Delhi
hi
Legally you will not get gratuity.
The fund goes to the trust but if you are not eligible as per law.
What happens to the money that was credited?
The amount is not credited to your name. And even if you leave after five years you can't claim from the trust. You always claim it from the Company
This is the legal position as of today. I am not getting into details of what some organisations are practicing. But if you have seen your appointment letter I am sure they would have mentioned "You will be paid gratuity as per the provisions of Gratuity Act"
Incidentally Labour Commission has now recommended that Gratuity should also be treated like PF and Trust formed and Money accumulated and you can get it at the time of retirement
Siva
From India, Chennai
Legally you will not get gratuity.
The fund goes to the trust but if you are not eligible as per law.
What happens to the money that was credited?
The amount is not credited to your name. And even if you leave after five years you can't claim from the trust. You always claim it from the Company
This is the legal position as of today. I am not getting into details of what some organisations are practicing. But if you have seen your appointment letter I am sure they would have mentioned "You will be paid gratuity as per the provisions of Gratuity Act"
Incidentally Labour Commission has now recommended that Gratuity should also be treated like PF and Trust formed and Money accumulated and you can get it at the time of retirement
Siva
From India, Chennai
Recd yr reply. thanks !
Bonus and Ex-gratia are seperately mentioned in my CTC as annual benefit . Grautuity also consider as annual benefit, and company keep aside some particular amount as my gratuity valuation.
So what about that money. After leaving the service within 2 years will i get only ex-gratia and bonus which they calculated on prorata basis or this gratuity amount also.
Pls advise.
S.K.
From India, Mumbai
Bonus and Ex-gratia are seperately mentioned in my CTC as annual benefit . Grautuity also consider as annual benefit, and company keep aside some particular amount as my gratuity valuation.
So what about that money. After leaving the service within 2 years will i get only ex-gratia and bonus which they calculated on prorata basis or this gratuity amount also.
Pls advise.
S.K.
From India, Mumbai
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