Prasenjit.mitra
Human Resource-professional
Abdulmunaf
Payroll
Arun7s
Manager
+5 Others

hi,
i just want to clarify this... in my latest appraisal form, my company has mentioned Gratuity as a separate component and added to my CTC. i have completed one year, and based on some calculation with my basic pay they have arrived at 11538 i.e. 20000 is my basic salary, that is multiplied by 15 and divided by 26.
basic*15/26.
So, if im going to leave this company in next 2 years, will i be able to claim this amount? or i ll not get this amount...
Expecting some experts to reply on this...

From India, Madras
Dear Arun,
You are eligible for gratuity only when you have completed 5 years of continuous service.
If you leave the organsiation before that you are not eligible.
For any clarification feel free to write or disucss.

From India, Mumbai
U have mentioned that u have completed one year.And after two year that will become three year. But as per law u are able to get gratuity amount if u completed five years . Therefore, after two year u can not claim your gratuity amount.
From India, Delhi
Dear Arun,
I agree with all the reply as above. A per Section 4 of the The Payment of Gratuity Act an employee who has completed 5 years are eligible to get gratuity after his Retirement or termination, superannuation or his death. The only exception is that if the person dies before completion of 5 years, then his nominees are entitled to get the gratuity amount.

From India, Kochi
Dear friends,

What has been stated by Shri Prasenjit Ji Mitra is the provision in the Payment of Gratuity Act, 1972. However, I have seen some instances in which different employers deduct gratuity component from the monthly salary of their employees on the ground that it is CTC. There is no provision in the Payment of Gratuity Act, 1972 for recovery of gratuity component from the salary of the employees. It is to be paid by the employers to the employees who complete more than 5 year service honestly (in case of death of the employee, condition of minimum 5 year service is not applicable. It is payable irrespective of the period of service) from the employer's own funds. Here, if the gratuity is recovered from the employees' monthly salary so I feel it is payable even if some employee does not complete five year service. Seniors and experts may please offer their comments on this issue.

The original poster may also please clarify whether his employer recovers the gratuity component or it is just being shown in the CTC for accounting purpose.

From India, Pune
I agree with Mr. Shyam Agrawal.
I have seen employers deducting gratuity from the very beginning of the employment. But as per their clause in HR Manual it could be given back only after completion of 5yrs when employee leaves. So, how can one claim it?!

From India, Thana
Dear,
Many organisations include gratuity as the part of CTC. My previous employment was with an MNC,we used to include gratuity amount in CTC.Since payment of the gratuity is a cost to the company,many organisations include it in CTC. It is actually not deducted, but the amount is kept like a reserve and paid to the employee only if he leaves the organisation after completion of five years. If he leaves the organisation before five years he is not paid that amount.
In case if Arun decides to leave the organisation within 2 years,he will not be paid that gratuity amount included in his CTC.
Regards,
Sumeet

From India, Mumbai
Dear Friends,
It is true,some companies deduct amount towards Gratuity from employees but they do pay the amount when the employee leaves the company. does not matter if he has worked only for a year or months.

From India, Mumbai
Dear all,
No Employer has no right to deduct the Gratuity amount from the salary of the employee. It has to be paid from the employers pocked after his retirement, superannuation or death. If any employer has deducted that he is liable to give back the entire deducted amount with 12% interest as per the latest supreme court judgment

From India, Kochi
Dear Arun,
It is correct that you will not be paid any Gratuity amount if you leave an organization before completing five years. But some companies do pay the Gratuity to the employees who have worked for ( paid for ) 240 days in the period. ( i.e. Completed service 4 Yrs & 8 Months, but he has worked or has been paid salary for 240 days in these 8 months) then they count these 8 months as one year & pay Gratuity accordingly. (i.e. 5 years x 15 days)

From India, Mumbai

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