Gratuity - Employee Salary - CiteHR
Nathrao
Insolvency N Gst Professional
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Pranab.kumar
Administration & Hr
Remeshcs
Hr Professional
Jeena Elsa
Student
+3 Others

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Hello Seniors
One thing i would like to know about Gratuity, I am working for an IT Company. We haven't deducted any amount from the Employees' salary as Gratuity. Still if there is an employee who is leaving after completing 5 years of continuous service, is there a provision to pay the gratuity from the Company's side or is it okay since we haven't deducted from the salary, we need not pay the gratuity to the employee
Expecting a reply.
Jeena

Dear Jeena, It is the obligation of employer to pay gratuity to employee. Hence the employer need not deduct any amount from the salary to pay gratuity. Abbas.P.S
Payment of Gratuity Act is a vital law of social welfare governing conditions of paying gratuity.
Gratuity is a voluntary payment from employer side to a worker who has worked five years in the company.
This payment is an expense which has to be catered for by eligible companies.
Employee need not contribute anything for getting gratuity subsequently like PF.
If you are in HR,it would be advisable to know all these legal compliances which your organisation is expected to adhere to.

Hello Seniors,
I am Sougat, my query is that, any pvt ltd company the working days is 22 in a month . Then how we calculate gratuity.
When we calculate Gratuity we taken 26 days or take 22 days. And we taken last drawn Basic salary of the employee or not? Please help me.
Thank You.
Sougat Das

Dear Team,
Warm greetings !!!
If any employee complete 5 yrs continuous service and then resign he is eligible to get the gratuity from his employer. It is the obligation of the employee to pay the gratuity on completion of 5 yrs of service to an employee who resign.
Regarding calculation though in most of the organisation the working days are 22 days but while calculating gratuity, last month Basic /26 days only as per the gratuity Act.
Please let me know if you need any further clarification.
Warm regards,
pranab chakraborty
9404384433

There is no provision in the Gratuity Act to 'deduct gratuity' from salary of employees.What is usually done by Companies is to show deduction from CTC towards gratuity.Whether you deduct or not you have to pay gratuity to employee who have five or more years of service,and you employ ten or more employed persons.
Hi Jeena,
Gratuity is not deducted from your salary. The employer has to pay the gratuity. As per rule you are eligible for Gratuity payment. You can check with your HR regarding this as there may be some policies in your companies for such payments..
Thanks

Hi Jeena
The Payment of Gratuity Act 1972 is applicable to establishment employing 10 or more employee in his establishment.
Employer is under an obligation to give notice of opening within 15 days of the Act becoming applicable to its establishment.
He is also under obligation to pay gratuity to its employee who has completed 5 years continuous in the establishment and leaving the service.
He is also under obligation to give notice within 30 days of relieving of the employee ,for payment of gratuity .
At this moment it is sufficient to know for you , more on request.
Thanks and regards
RL Dhingra

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