Labour Laws & Ir
Hr & Administration
25th April 2011 From India, Pune
I agree with the statement made by Mr. Khola as in accordance with the provision of Bonus act one who is getting salary more than Rs. 10000/- is not entitled for Bonus.
Secondly he is eligible for gratuity on the basis of his basic + D.A. when he complete the continuous service of 5 years in the same organization,
25th April 2011 From India, Kolhapur
25th April 2011 From India, Mumbai
AS PER BONUS AND PAYMENT ACT 1965, HE IS ELIGIBLE FOR 8.33% OF HIS BASIC SALARY AS A BONUS AND gratuity eligibility is 4.15%.but is caculat on the basis of duration of services year.its minimum requirement of services is 5 year or 240 present day each year up to 5 year.
26th April 2011 From India, Surat
Gratuity is a liability of an employer as an employee concern has completed his service of 5 years and on his or her exit from the services gratuity should be paid to him or her. So, question doesn't arise to deduct it from salary of employee; if so it is bad in law and contrary to the provisions.
One probability is there if u and management agree for the annual payment fixes on package basis, it may include gratuity in the CTC. It may please be checked. If there is no any such a agreement then u can protest the same. no u should protest the same to avoid further mis consequences in future.
26th April 2011 From India, Kolhapur
The observation made by Kiran Kale is correct. May be as he has rightly pointed out, it has been shown as part of CTC and may not be a deduction. The gratuity contribution of the employer will generally be shown alongwith the PF contribution from the employer side. As the PF contribution is equivalent to the employee contribution you would have assumed that gratuity will also be deducted.
Can you please update the status.
27th April 2011 From India, Madras
There is no such provision for deduction of salary on account of gratuity, Gratuity is paid to the employee after completion of 5 years in the organisation for his good behavior in the organisation, Employee is eligible for gratuity after completion of 5 years only, If the employer is deducting some amount from the salary on account of gratuity, if any employee left the organisation before completion of 5 years then how he will pay to the employee.
Employer is not eligible to deduct from the salary any amount on account of gratuity.
27th April 2011 From India, New Delhi