Manager, Operations
Sr. Hr Executive @ Polymerupdate
Rajeev Verma
Hr Professional
Executive Hr
Amith R Murthy
Hr Executive
+8 Others

The Component of gratuity should be calculated from date of joining or date of confirmation? From when does the liability of the company to pay an employee becomes mandatory? what if employee leaves before that period?
27th June 2008 From India, Mumbai
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.
27th June 2008 From India, Mumbai

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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?
1st July 2008 From India, Mumbai
Hello Can anyone tell me whether the criteria to claim gratuity is strictly 5 completed years or one can claim even if the service rendered is 4 years and 11 months. Please reply.
2nd July 2008 From India, Bangalore
Gratuity payable under the Gratuity Act. Calculation of Years get starts from the Date of Joining. Its complusary/mandatory to pay Gratuity (Social Welfare) at the time of Leaving the job or retirement. Basic criteria is completion of 5yrs.
2nd July 2008 From India, Ahmadabad
Hi I have just got a latest update that if a person has completed 4 years and 9 months, he is eligible for Gratuity. Any feedback?
3rd July 2008 From India, Bangalore
Dear Pari,
thanks for the good information. as u mentioned gratuity is payable from the date of joining. Also mentioned should be included in HR policy by the co.
my query is:
is it not mandatory for the co. as per Gratuity Act.
pls reply
Ganesh Nautiyal
3rd July 2008 From India, Gurgaon
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
3rd July 2008 From India, Mumbai
5th July 2008 From India, Mumbai
Yes eligibility for payment of Gratuity at 4.10yrs. as well same for the PF. means if empoyee has competed 9.10 yrs. then he/she falls under Pension Fund scheme. Gratuity is payable indeed.
5th July 2008 From India, Ahmadabad
Dear Friends,
Yes Gratuity should be taken into consideration from day one and according to me if any employee as completed 4 years and 240 days than he/she will eligible for Gratuity.
Friends correct if i am wrong...........
Amith R.
16th July 2008 From India, Bangalore
Hello Can anyone tell me whether the death case. employee is worked in three month so his famaily is claim of gratuity Please reply. kumer singh
25th July 2008 From India, Delhi
I think there is lot of discussion on the Gratuity and what the latest I have heard is same what Mr. Amith R. has said and I ave heard that for this updatation there is a Case Law also, but I am unable to get the same till date, untill and unless I got the same I can't comment on that, but as per Gratuity Act it is still only after the completion of full 5 years of service with the organisation.
In the case of death of an employee this condition doesn't exist, Employer has to give the Gratuity to the nominee of the deceased employee even if his / her services falls short of 5 years.
25th July 2008 From India, Delhi
Just for information,
Gratuity tax exemption limit is revised to 10 lacs.
I.e. if a person has recieved a gratuity upto 10 lacs, there is no tax liability
However if there is more than 10 lacs, then the person would pay tax on excess of 10 lacs
15th January 2013 From India, Mumbai
Gratuity is a part of CTC(Depends on the organisation how it takes).
Gratuity should be calculated when the employee joins the organisation(Date of Joining should be considered).
and the maturity period in order to claim Gratuity is 5 years.
For Example : If the employee stays with the organisation for 4 Years.6 Months , he is eligible claiming Gratuity.If the employees stays 4 Years. 05 Months s/he isn't eligible.
Hope it helped.
16th January 2013 From India, Hyderabad
Is payment of gratuity is mandatory for employer ? If yes then under which section of Payment of Gratuity Act ? What are the condition (such as no. of employees) under which it is mandatory for employer to pay Gratuity ? If employer decides not to pay gratuity or delay gratuity payment then what is penalty for him ?
5th August 2013 From India, Mumbai
I need a somple of gratuity policy for a steels manufacturing company Best regards, Jamal
20th August 2013 From Bangladesh
Dear Seniors,
Kindly advice am working in pvt company and in this company there is no like basic, DA, HRA.
The salary is consolidated.
Kindly help to calculate the Gratuity amount calculation after completion of 5 years.
4th May 2015 From India, Chennai
More than courses, especially since you have an MBA, your resourcefulness, ability to spot opportunities and perseverance will help you get a job.
See if you have anyone in your network working in such companies, see how many of them can you ask to forward your resume.
Post resume in all job sites. Followup on whatever vacancies you can fish out from there.
Keep an eagle's eye on job columns in ToI/HT career pages. Follow all of them up.
Most important, remember that you will get a job if you slog long enough. So, don't get disheartened. If you are not from a big name B-school, getting first break will take time but you will get there.
4th May 2015 From India, Delhi
Hello, can anybody suggest in case an organisation is 25 years old and it started the Gratuity just one year back(2016) is the employee working for last 10 years is entitled to claim for the gratuity today or it have to wait for the five years form the date the gratuity is started in the organisation??????
28th January 2017 From India , Jaipur
Pari sir,
you have mentioned that gratuity to be paid fromantic probation and training period need not be calculated. buthe our worker is claiming for training period also I.expect. date of joining. pl clarify with some cases laws if possible.
20th July 2018 From India, Bengaluru
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