Assuming my basic salary is Rs 15,000/- and I have worked for eight years in a company, what amount of gratuity can I get if I resign today?
I would also like to know if the employers deposit this amount with some government agency like LIC and how to find out the accumulated gratuity.
From India, Mumbai
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1I would also like to know if the employers deposit this amount with some government agency like LIC and how to find out the accumulated gratuity.
From India, Mumbai
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You are eligible to receive a gratuity of Rs. 69,230 (15,000/26*15*8). Companies follow different methods, such as having their own trust account or an account with some government and non-government agencies. However, you can't check with them for accumulation. For sure, you are eligible for the above-mentioned amount if you have continuously worked with your current employer.
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There is no question of finding out the accumulation, as it is immaterial. You are eligible for gratuity based on 15 days' salary for each year worked. Of course, there is no gratuity if you have worked for less than 5 years. It does not matter how much the company has put into its fund or into any LIC scheme.
From India, Mumbai
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From India, Mumbai
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Your information is incomplete. You have mentioned only about basic pay. What about DA and other salary components which are included in the terms "salary" or "wage"? The formula for the computation of gratuity is given in the Payment of Gratuity Act. Please go through it, and you will have your answer. Regarding the deposit of gratuity with LIC, it doesn't matter. This arrangement with LIC comes into the picture when the employee dies while in service. The other details are not of your concern as of now.
Regards,
AK Jain
From India, New+Delhi
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Regards,
AK Jain
From India, New+Delhi
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As informed by our learned members, the gratuity payable to you has been explained.
Regarding the Gratuity Scheme with LIC of India:
a) The company forms a trust and then deposits the gratuity liability indicated by LIC based on an actuarial valuation done every year.
b) The actuarial valuation is done based on the data provided by the employer.
c) This fund also earns interest, but the interest is for the principal amount deposited by the employer, and there is no benefit that accrues to the employee technically.
d) If an employee resigns from the organization and is eligible to receive gratuity, the company files an application with LIC.
e) LIC releases the amount claimed after verification of the data provided by the employer to the gratuity fund maintained by the employer. However, the gratuity is paid by LIC until there is a fund deposited by the employer lying with it.
f) The employer, in turn, releases the amount to the employee.
g) If the employer remits a risk premium to LIC, LIC releases gratuity for the period of service rendered by him and also for the period he would have continued in service if he were alive until his superannuation from the company.
Trust the matter is clear.
Regards
From India, Madras
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Regarding the Gratuity Scheme with LIC of India:
a) The company forms a trust and then deposits the gratuity liability indicated by LIC based on an actuarial valuation done every year.
b) The actuarial valuation is done based on the data provided by the employer.
c) This fund also earns interest, but the interest is for the principal amount deposited by the employer, and there is no benefit that accrues to the employee technically.
d) If an employee resigns from the organization and is eligible to receive gratuity, the company files an application with LIC.
e) LIC releases the amount claimed after verification of the data provided by the employer to the gratuity fund maintained by the employer. However, the gratuity is paid by LIC until there is a fund deposited by the employer lying with it.
f) The employer, in turn, releases the amount to the employee.
g) If the employer remits a risk premium to LIC, LIC releases gratuity for the period of service rendered by him and also for the period he would have continued in service if he were alive until his superannuation from the company.
Trust the matter is clear.
Regards
From India, Madras
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Hi, Monthly gratuity amount is to be deposited in any Government agency or company keeps self record for that. Who are later liable to pay to employee. Please help in clearing this point. ashok
From India, Jaipur
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From India, Jaipur
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Company is legally bound to pay gratuity. They are equally bound to enter into group gratuity schemes, and an employee is not required to be checking on a monthly basis whether the contribution is paid out or not. In case gratuity is not paid, the employee can complain to the Labour Commissioner of the area for redress.
From India, Pune
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From India, Pune
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
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