Hi, My company is showing gratuity as a part of my CTC @ 4.7% on basic salary. Hence if I resign after completion of my 5 years tenure will I be getting the amount with interest?
From India, Hyderabad
From India, Hyderabad
Gratuity is not 4.7% of the basic salary, and it should not be deducted from your salary. Perhaps your company includes it in the Cost to Company (CTC) calculation. After completing 5 years in your company, when you retire, you are entitled to an amount calculated as follows:
Basic salary at the time of retirement / 26 days x 15 x Number of years you served.
This means you will receive 15 days of basic salary for each year of service. For example, if your basic salary at the time of resignation is Rs. 10,000/-, then your per day basic salary will be Rs. 384/- x 15 days = Rs. 5769/- x number of years you served = gratuity amount.
From India, Chennai
151Basic salary at the time of retirement / 26 days x 15 x Number of years you served.
This means you will receive 15 days of basic salary for each year of service. For example, if your basic salary at the time of resignation is Rs. 10,000/-, then your per day basic salary will be Rs. 384/- x 15 days = Rs. 5769/- x number of years you served = gratuity amount.
From India, Chennai
The concept of gratuity is that a person who has worked for 5 years or more continuously in an establishment covered under the Payment of Gratuity Act 1972 gets gratuity (payment of a part of the salary as gratitude by the employer for service done by the employee). It can also be called a defined benefit scheme for employees completing 5+ years of service in an establishment. Gratuity is like a right to property and cannot be denied except under certain very specific circumstances. The formula for gratuity has been given by a learned member in his post. Do read the original act and get more information.
From India, Pune
From India, Pune
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.