Sr. Hr Executive @ Polymerupdate
Amith R Murthy
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Gratuity is payable to employees who have completed 5 years of continuous service.Gratuity is payable from Date of joining i.e. date of probation (training, contract, retainership basis are not considered.) This should be mentioned in HR Policy of the company and appointment letter issued to employee.Gatuity is calculated as = Last drawn (Basic+DA) x 15/26 x No. of year of continus. completed service It can be a component in CTC.If employee leaves before 5 years Gratuity is not payable.Gratuity upto Rs.3.50 lacs is not taxable.LIC is having a good Group Gratuity Scheme.Payment of Gratuity is a statutory requirement.See attachment.ThanksRegardsPari.
Thank You very much Pari. But a small confusion still...If the company policy decides the payment of gratuity from Date of Joining than what if the company decides to start such date for gratuity calculation from Confirmation date? I s it mandatory to calculate gratuity from date of joining? under which clause?
Hi AllGratuity is also paid to the employees who have not completed 5 years tenure with the organization. For eg if you see in Banking sector ICICI Bank follows the norm of paying it after 5 years but if you compare it with Reliance they will calculate it from the day you have become the part of the organization till you last day and the same amount will br reimbursed to you with F&F amount.Please update me in case if there is any updations on the same.RegardsTina Vij