Hi, dear HR fraternity! I am working in a construction company. We are covered under EPF in the year 2007 with the strength of 20 employees, and now we have 200 employees. We are not deducting any gratuity contribution from the employees and we are not registered with any Dept concerned to Gratuity. By the next year some of our employees complete 5 years of service. Can any one suggest me what should i do?
From India, Hyderabad
From India, Hyderabad
Hi, dear HR fraternity! I am working in a construction company. We are covered under EPF in the year 2007 with the strength of 20 employees, and now we have 200 employees. We are not registered with any Dept concerned to Gratuity. By the next year some of our employees complete 5 years of service. Can any one suggest me what should i do?
From India, Hyderabad
From India, Hyderabad
Dear Srinivas
Please refer the Payment of Gratuity Act.
If the strength of your company is more than 10 then obviously without any doubt, you have to pay the Gratuity and you should not deduct any amount from the salary of the employees. The Gratuity is as like reward for the employees who are leaving the service after serving for 5 years or more tenure.
There are some Insurance Policies available with LIC Of India. Please consult the nearest LIC Office, who can guide you with the details of the Gratuity Policy. Your company has to pay the Policy premium amount and there should not be any deduction in the salary of any employee.
With the collected details from LIC of India, you can discuss with your management and start implementing the same.
Wish you all the best
From India, Kumbakonam
1166Please refer the Payment of Gratuity Act.
If the strength of your company is more than 10 then obviously without any doubt, you have to pay the Gratuity and you should not deduct any amount from the salary of the employees. The Gratuity is as like reward for the employees who are leaving the service after serving for 5 years or more tenure.
There are some Insurance Policies available with LIC Of India. Please consult the nearest LIC Office, who can guide you with the details of the Gratuity Policy. Your company has to pay the Policy premium amount and there should not be any deduction in the salary of any employee.
With the collected details from LIC of India, you can discuss with your management and start implementing the same.
Wish you all the best
From India, Kumbakonam
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx