Hi, My company is showing gratuity as a part of my CTC @ 4.7% on basic salary. Hence if I resign after completion of my 5 years tenure will I be getting the amount with interest?
From India, Hyderabad
From India, Hyderabad
Gratuity is not 4.7% on basic salary, and it should not be deducted from your salary. May be your company shows that as CTC. After completion of 5 years in your company, while you retire, you have to get the amount calculated as follows.
Basic salary at the time of retirement / 26 days x 15 x No. of years you served.
Which means you will be getting 15 days basic salary for every year you served. For Eg: your basic at the time of resignation is Rs. 10,000/-. SO, per day basic will be Rs. 384/- x 15 days = Rs.5769/- x no of years you served = gratuity amount
From India, Chennai
147Basic salary at the time of retirement / 26 days x 15 x No. of years you served.
Which means you will be getting 15 days basic salary for every year you served. For Eg: your basic at the time of resignation is Rs. 10,000/-. SO, per day basic will be Rs. 384/- x 15 days = Rs.5769/- x no of years you served = gratuity amount
From India, Chennai
Concept of gratuity is that a person who has worked for 5 years or more continuously in an establishment covered under Payment of Gratuity Act 1972, gets gratuity(Payment of a part of salary as gratitude by the employer for service done by employee)
It can also be called a defined benefit schem for employees completing 5+ years of service in an establishment.
Gratuity is like a right to property and cannot be denied except under certain very specific circumstances.
formula for gratuity has been given by a learned member in his post.
Do read the original act and get more information.
From India, Pune
It can also be called a defined benefit schem for employees completing 5+ years of service in an establishment.
Gratuity is like a right to property and cannot be denied except under certain very specific circumstances.
formula for gratuity has been given by a learned member in his post.
Do read the original act and get more information.
From India, Pune
CTC of 4.7% is considered to offset eventual payment of gratuity, if any.
If the terms of appointment are not clear, such amount will not be refunded to you in case you work for less than 5 years, because you will not be entitled to receive gratuity as per the act.
From India, Mumbai
If the terms of appointment are not clear, such amount will not be refunded to you in case you work for less than 5 years, because you will not be entitled to receive gratuity as per the act.
From India, Mumbai
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Company Letter for Completion 01 Month Notice.docx
FORM-F-NOMINATI ON OF GRATUITY.pdf