Am I Eligible for Gratuity After 5 Years in an IT Firm Without It in My Salary?

Hello Team,

I have worked in an IT firm for 5 years. There is no component of gratuity in the salary. Am I eligible for the gratuity in this case?

Thanks in advance.

Ritesh Vadodaria

Gratuity becomes payable if the employee who leaves has completed five years of service.

The gratuity element is usually part of the Annual CTC. Even if it is not mentioned in your CTC, gratuity payment should be made.

Regards,
P. Arun Kumar

Hi Ritesh,

This is in furtherance of your query. Let me add one query to yours. Has there been any change in the "Payment Of Gratuity Act"?

My brother has worked in an IT company for only 2 years before he quit the job, yet he has had it paid by the company. Has the time period of 5 years been changed?

Regards,
Santosh Verma

There is no change in the Gratuity Act. If an employee has completed 5 years of his/her service, he is legally entitled to Gratuity. Some companies fix the CTC in a way where Gratuity is a part of CTC. In that case, if an employee leaves before 5 years, he gets the amount as an ex-gratia payment.

N N Tiwari

Is gratuity eligible for contract employees? I have been working in a company on a contract for the past 11 years. My PF is deducted monthly. Please advise.

Dear Members,

If the company does not have a policy for gratuity, is it mandatory to provide gratuity after 5 years under the policy? Is this Act mandatory for all companies? Please shed some light on this.

Regards,
Sheela Shetty

As far as my knowledge goes of the Gratuity Act, every employee who has completed five years of continuous service with any organization is eligible for claiming Gratuity. It is considered a statutory payment, and all companies are covered under the Act.

Seniors, please correct me if I am wrong.

Hi Ritesh,

You are eligible for gratuity. You have completed 5 years of continuous service. The employer has to give you the gratuity.

The Bare Act mentions: A resigned employee completing 5 years of continuous service has to apply for gratuity to the employer. He can receive the gratuity in his Full & Final Settlement, or the employer should pay the gratuity on or before the completion of 30 days after the relieving date of the resigned employee.

Resigned,
Nimish Joshi
09969526325

Hi Ritesh,

Gratuity is payable upon completion of five years of continuous service in the Company. Yes, you are eligible for gratuity even if it is not specified in your appointment letter, offer letter, or breakup of salary. It is a statutory retirement benefit based on a Government regulation, depending on the coverage under the Act.

Rahul
09968270580

Hello Team,

I have worked in an IT firm for 5 years. There is no component of gratuity in the salary. Am I eligible for the gratuity in this case?

Thanks in advance.

Ritesh Vadodaria

Hi All,

I found this to be an interesting topic. I am assisting a small company with their HR systems. The company has two divisions and about 22 employees, split between these two divisions.

Some employees have been with the organization for around 10 years. Currently, there is no PF or Gratuity included as part of the salary. Is it possible for us to add at least one of these components to the salary as a benefit?

If so, how should we proceed? Please provide guidance and recommend a consultant who can assist us with these details.