I have joined a Company on 30th March 2006 and completed 9 Years 5 months, and I resigned in 31st August 2015, but I didn't have PF or ESI now my company says as I am not enrolled in PF or ESI i am not eligible for GRATUITY. is it correct ???, My last salary is 15,000/- lumsum, then what will be the eligible amount?
From India, Delhi
From India, Delhi
Dear Kannan, Gratuity has nothing to do with PF & ESI. For 9 years' service with a salary of Rs. 15000/- , gratuity amount is 15000x9x15/26 = Rs. 36,161/-. Abbas.P.S
From India, Bangalore
517From India, Bangalore
Hi Kannan, As mentioned in previous thread shared by Abbas, you are entitled to get gratuity of said amt.You can please talk to your HR/manager and avail the benefit. Kannan R
From India, Bangalore
From India, Bangalore
Dear Abbsiti,
The amount may be Rs.77885/- as per your method, thanks for your valuable comments. But the management says that I am not eligible. as per my every individual who completed 5 years in a firm is eligible for Gratuity.
From India, Delhi
The amount may be Rs.77885/- as per your method, thanks for your valuable comments. But the management says that I am not eligible. as per my every individual who completed 5 years in a firm is eligible for Gratuity.
From India, Delhi
Dear Ukannan, based on the limited facts provided by you, I believe that you are eligible for gratuity as you have worked for more than 4 years and 6 months for the company in question. However, you may not be eligible for gratuity if your company has not, at any point of time during your employment, employed more than 9 employees. Please note that as per section 1 (3) (b) of the Payment of Gratuity Act ("Act"), the Act will apply to every establishment in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
Other reasons for which you may be denied gratuity is termination for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer. However, your employer will have to prove the aforesaid before denying payment of gratuity to you.
In respect of PF, please note that prior to September 1, 2014, an employer was not required under the law to contribute employer's contribution towards the PF in respect of employees earning more then INR 6500 per month. However, with effect from September 1, 2014, an employer is required to contribute employer's contribution towards the PF in respect of all employees earning up to INR 15000. Having said that it is important to note here that Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 does not apply to an organisation which employees less than 20 employees.
in light of the above, kindly confirm if the Company for which you worked for, employed the minimum applicable employees i.e. 10 for gratuity and 20 for PF. If yes, I believe that you are entitled to gratuity; and also to some extent for the PF. In respect of PF, I will need more information as to what was your salary during the last nine years prior to September 1, 2014. Did you at any point of time during your employment with this company, receive less than INR 6500?
ESI applies generally to a factory. I assume that you are not employed in a factory, and therefore ESI Act will not apply to you.
From India, Bangalore
Other reasons for which you may be denied gratuity is termination for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer. However, your employer will have to prove the aforesaid before denying payment of gratuity to you.
In respect of PF, please note that prior to September 1, 2014, an employer was not required under the law to contribute employer's contribution towards the PF in respect of employees earning more then INR 6500 per month. However, with effect from September 1, 2014, an employer is required to contribute employer's contribution towards the PF in respect of all employees earning up to INR 15000. Having said that it is important to note here that Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 does not apply to an organisation which employees less than 20 employees.
in light of the above, kindly confirm if the Company for which you worked for, employed the minimum applicable employees i.e. 10 for gratuity and 20 for PF. If yes, I believe that you are entitled to gratuity; and also to some extent for the PF. In respect of PF, I will need more information as to what was your salary during the last nine years prior to September 1, 2014. Did you at any point of time during your employment with this company, receive less than INR 6500?
ESI applies generally to a factory. I assume that you are not employed in a factory, and therefore ESI Act will not apply to you.
From India, Bangalore
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx