Gratuity Eligibelity - Doc Download

Dear friends,
Here is a notes on 'Gratuity compiled' to know little more about the Gratuity especially of the deceased employee, please use this as a reference duly updated here and there if required.
All the best.

Hi,
Just a small clarification:
It is not upto the age of retirement. The Gratuity Act is silent about this. The organisation may decide to pay only till the actually worked years, for 5 years or upto the ceiling limit.
Apologize for error.

I was working for almost 6 years with a my firm in Mumbai for one of its MNC client. I was offered a CTC Salary WITHOUT mentioning any provision for Gratutiy in my CTC & in my Offer letter too.
Gratuity & Bonus will be applicable to you, Will it be part of salary, No such thing were mentioned in my CTC /Offer letter.
Now I had moved to new organization, Since I had completed more than 5 Years I had claim Gratuity from by previous firm. but my firm had denied me stating that we are not liable to pay you over an above CTC. Gratuity was part of your CTC only. you should consider gratuity as part of your salary only so No separate gratuity will be paid.
As per my understanding gratuity is applicable on completion of 5 years or 4 Years & 240days. it would be difficult to judge whether a employee will be completing 5 years of is continuous service at the time of joining.
I need your expertise & understanding on the same. ASAP.
Thanks & Regards
D. M. Shah.

Hi Santosh,
Yes employee is liable for gratuity if in the case of death. payment of gratuity is done on the basic of this formula.

Last drawn salary/ 26 X 15 X No of years services completed.

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If there is no mention about Gratuity being part of your salary or CTC you'll have better chance of getting your gratuity separately. Check all of your documents such as Interview call letter, offer, apptt. letter etc. salary slips or any other communication and confirm whether there is any mention about gratuity to rule out CTC include gratuity also or not. Any of these documents should clearly spell it out. Merely 'it is understood' or 'convention' or 'practice' etc. cannot hold water. Then you can fight it out. Gratuity being a statutory payment any firm has to prove whether gratuity is paid or not and if yes as to how.