sandeephr1983
1

but it is compulsary for all organisation to pay graduity if employee has completed 240 working in his/her fifth year working.....
From India, Faridabad
amitavamaj
5

Dear Deepak, Gratuity is payable to the concerned employee since he has completed 240 days in his 5th year. Regards Amitava
From India, Calcutta
Rahul R Khodke
Dear Mr.Deepak,
Yes, the Gratuity is applicable.
Employee had served for 4 years 10 months 18 days.
An employee who had served for more than 4 years 6 months he is eligible for gratuity.
Regards,
Rahul R Khodke
09869415332

From India, Pune
anthonypaul
16

Hi ,

gratuity

Guidelines

1 Introduction

Paid for faithful continuous service in the organization

Payable on completing 5 years of continuous service with the organization

Includes probation period

The above rule is waived of in the eventuality of

Death

Permanent disablement



2 Applicability

Applicable to those organizations where employee strength is more than 10



3 Family

Himself/ Herself

Spouse

Children (married or unmarried)

Dependent parents

Dependent in laws

Widow & children of predeceased son

Adopted children



4 Definitions

Superannuation

Attainment of age for vacating employment



Retirement



Termination of employment other than superannuation



Wages

Earned while on duty or on leave.

Includes DA

Does not include bonus, HRA, overtime, commission etc.



5 Payment of Gratuity

Gratuity can be paid to an employee when

He is superannuated

Resigned/ retired after 5 years of continuous service

Permanent disablement

Death

If a person has completed 240 days in a year on his/ her fifth year of service,

he/ she is eligible for gratuity



6 Calculation

The formula for calculating gratuity is as follows –

[(Salary*15)/26]*service period

Where,

Salary = Basic + DA



PRESENT BASIC X No. OF COMPLETED YEAR X 15

Gratuity= ------------------------------------------------

26





7 Calculation of gratuity in CTC

5% of basic salary

In some cases it is actually 4.81% which is rounded up to the nearest integer





8 Taxability

Not taxable up to the ceiling of 3.5 lakhs.

Any amount above the same will be taxable.

The ceiling is applicable only once during the entire service period

e.g.: If the person changes his job more than once,

then he will avail the benefit of tax savings upto 3.5 lakh only once.

9 Withdrawal of gratuity

Non transferable

The LIC draws a cheque in the favor of the organization/ Gratuity Trust

In turn draws cheque in favor of the employee

From United States, Palo Alto
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.