Dear All ,
Thank you for your valuable insight.now from where i see the case,
The company is liable to pay gratuity as per payment of gratuity act 1972.
and No deduction shall be made on part of salary of employee when it comes to gratuity however for PF emoluments in lump sum of 12% are deducted and similar 12 % is contributed by the employer.
However there are few requirements on the part of employee for claiming of gratuity:
1 He should have worked for not less than five years for the employer.
The Gratuity is Calculated as follows : ( Basic + DA ) /26 X 15 X No of Years Worked.
Also as For Coverage of the ACT to your company ,
Yes , if 10 or More Persons have been , or were employed in any day of the preceding 12 months then yes , gratuity is applicable.
As far including current amendments :
Gratuity upto INR 10,00,000 is tax free and The maximum Gratuity Payable should not exceed a total of 20 Months Wages.
Hope your Query is cleared for some extent.
And please other members if i am wrong anywhere please do correct me....i am always open to learning
However for people with doubt in any thing related HR fraternity can contact me on my linked profile
Arakanshu Singh - India | LinkedIn or mail :akkyinmba@gmail.com.