Gratuity (revised)

I had worked in a company for 3 years, In my appointment letter Graguity is included in my CTC which reads as under: "Your total monthly remuneration is " Basic Da HRA CA Other Total Employer Contr to PF Bonus Gratuity Grand Total My query is whether I claim for gratuity amount as it is part of my monthhly remuneration? Seniors please advise

Dear – If it is a part of monthly remuneration you must have received this amount every month. You are also saying that this is the part of CTC. In that case it is shown as cost to the unit but at the same time this is to be given at the time when you become entitled to receive it in accordance with the provision of the P G Act, 1972. Moreover this point of showing gratuity in CTC has always become the point of discussion for our HR members. In my opinion you are not entitled to receive the payment of gratuity amount from the company. Opinion submitted as requested. Regards, R.N.Khola (Labour Law & Legal Consultants)

dear by showing gratuity in CTC employer make fool of employees because it is payable after 5 years of service.they show it in CTC but donot pay it if someone leaves before five years.this is the culture followed by IT and software development companies. regards j s malik

Dear Mr.Malikji, For calculating grautity, how do we consider long leave taken (eg: Maternity leave) to count the completed 5 years?

dear maternity leave taken as per maternity benefit act will be counted as working day for calculating number of years of service or any other purpose. regards j s malik

Hi, If you are on the payroll of the company including all long leaves, then you are entitled to gratuity after 5 years of continuous service.Some companies make gratuity payable if an employee completes 4years too. But as per the act, to be eligible for gratuity, one must complete 5 years of employment with the company. But in the appointment letter if it is not mentioned clearly that this monthly gratuity amount is payable only after completion of 5 years of service then you can always claim the amount. If it has not been given on a monthly basis then it should be due to you on your resignation as a lumpsum amount. Discuss with your HR, seek an answer to why such ambiguous payment structure is given if the company has no intention of giving the gratuity before completion of 5 years. This is my personal opinion,I think one must make some noise so that the policies change atleast for the benefit of the rest. Thanks Geeta

Dear As your gratuity was included in your CTC and CTC is cost to the company therefore it is already cleared that they have given the amount of gratuity with your salary on per month basis as mentioned in the salary break up but it can be availed only after completion of 5 years of your job tenure.

hi as per my knowledge gratuity is payble only after completing of 5 years service with rate of Gratuity = Basic+DA/26*No OF years Service *15

Hai Gratuity is eligible only after completing five years continuous service. But this will include in the CTC. MANOKAVIN

Hi, Though Gratuity is a part of your CTC but as per the Gratuity Act an employee becomes eligible to get gratuity amount only after completion of 5 years with the same organisation. So in your case you are not entitled to get this amount. Thanks Shikha email at [Login to view]