Dear Friends,
First of all, I would like to wish a "VERY HAPPY WOMEN'S DAY".
1. My friend is working in a company where Gratuity is included in the CTC (4.81% of Basic), and the company deposits it to the authority on time as well.
2. My friend has completed 4 years and 204 days (4.55 Years) and wants to leave the company. Please suggest whether she is entitled to get the Gratuity from the current company or not.
Regards,
XYZ
From India, Gurgaon
Acknowledge(0)
Amend(0)
First of all, I would like to wish a "VERY HAPPY WOMEN'S DAY".
1. My friend is working in a company where Gratuity is included in the CTC (4.81% of Basic), and the company deposits it to the authority on time as well.
2. My friend has completed 4 years and 204 days (4.55 Years) and wants to leave the company. Please suggest whether she is entitled to get the Gratuity from the current company or not.
Regards,
XYZ
From India, Gurgaon
Acknowledge(0)Amend(0)
Dear Anil,
Five years completion is necessary to become eligible for gratuity.
You stated that the company depositing gratuity amount to the authority, there is no authority formed by the government to deposit gratuity amount. The employer is liable to pay gratuity to its employees, which is a legal requirement.
Applicability: Any employer of the above-noted establishments where ten or more persons are employed or were employed on any day of the preceding twelve months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.
Entitlement: Gratuity is payable to an employee (or nominee - in case of the death of the employee) who has rendered continuous service of five years or more upon termination of employment, superannuation, retirement, or resignation. Completion of continuous service of five years is not necessary when the termination of employment is due to death or disablement.
Calculation: W x Y x 15/26 where W = Last Wage drawn, i.e., basic + DA
Y = number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as a full year)
15 = 15 days' salary
26 = Number of working days in a month.
Best Regards,
Global Overseas-Delhi office
Mohammad Sajid Ansari
9899775578
From India, Gurgaon
Acknowledge(0)Amend(0)
5Five years completion is necessary to become eligible for gratuity.
You stated that the company depositing gratuity amount to the authority, there is no authority formed by the government to deposit gratuity amount. The employer is liable to pay gratuity to its employees, which is a legal requirement.
Applicability: Any employer of the above-noted establishments where ten or more persons are employed or were employed on any day of the preceding twelve months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.
Entitlement: Gratuity is payable to an employee (or nominee - in case of the death of the employee) who has rendered continuous service of five years or more upon termination of employment, superannuation, retirement, or resignation. Completion of continuous service of five years is not necessary when the termination of employment is due to death or disablement.
Calculation: W x Y x 15/26 where W = Last Wage drawn, i.e., basic + DA
Y = number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as a full year)
15 = 15 days' salary
26 = Number of working days in a month.
Best Regards,
Global Overseas-Delhi office
Mohammad Sajid Ansari
9899775578
From India, Gurgaon
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee Benefits.doc
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F