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saswatabanerjeeThat is the correct practice.
You are eligible for gratuity only after you work for 5 years without a service break.
However, I am sure they are not actually deducting from your salary (Is it coming as a deduction on your salary slip?). There is a difference between CTC and salary.
From India, Mumbai
umakanthan53Though the components constituting monthly salary under the contract of employment are part and parcel of the CTC, the expenses incurred by the employer towards any other item of the CTC cannot be actually adjusted by him against the monthly salary. Very particularly, the actuarial cost of gratuity spent by the employer is only to lesson his liability of lump sum payment when the occasion arises later. It requires no statutory contribution from the employee. Therefore, If it is done so in actual practice, it would tantamount to illegal deduction and the poster can file a claim u/s 15 (1) of the Payment of Wages Act,1936, if his employment falls within the purview of the Act.
In any other case, a Civil Suit can be instituted against the employer for the breach of the contract of employment. Prior to this, the poster may politely appraise the employer of the legal position of gratuity payment and request him to stop the illegal deduction forth with under his assurance of serving the establishment for not less than 5 years of continuous service.
From India, Salem