My employer is deducting gratuity from my monthly salary its showing in my payslip as deduction part also. And they are not paying that after resignation before 5 yrs.
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If gratuity is part of salary and is getting deducted from your SALARY, it should be paid even if leave before 5 years. On the other hand, if it is outside the salary part and not reflected in the salary slip, they can deny it.
Dear Ramya,
Deduction of gratuity from employees salary is illegal practice, if it is appeaing at your salary slip it is unauthorized deductions.
You are entitled for the said deductions with interest to be paid back to you. You can send legal demand notice to them.
Compliance First
Deduction of Gratuity is unlawful act of the employer.
if Gratuity is deducted from your salary & you have evidence for that you can move with legal demands.
you can send legal notice to your company.
Nowadays companies are adding gratuity premium payable to LIC in the CTC component of salary. Please check your appointment order.
It is okay if the employer shows the amount payable to an employee at the time of his retirement as cost to company from date of joining, but it should not be part of salary. If you see the definition of wages/ salary under any Act, it excludes bonus, amount payable by employer towards PF, gratuity etc. These costs can be costs to company and you can show it as cost to company in the appointment letter also, but no way can he deduct it from the salary payable. If deducted from the salary, it should be paid back to him without any qualification as to length of service.
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