Dear Friends,
1st of all I would like to wish a -"VERY HAPPY WOMENS DAY"-.
1. My friend is working in a company where Gratuity is included in the CTC (4.81% of Basic), and compnay depositing it to the authority on time also.
2. My friend has completed 4 years and 204 days (4.55 Years) and want to leave the company, please suggest whether she is entitles to get the Gratuity from the current compny or not.
Regards
XYZ
From India, Gurgaon
1st of all I would like to wish a -"VERY HAPPY WOMENS DAY"-.
1. My friend is working in a company where Gratuity is included in the CTC (4.81% of Basic), and compnay depositing it to the authority on time also.
2. My friend has completed 4 years and 204 days (4.55 Years) and want to leave the company, please suggest whether she is entitles to get the Gratuity from the current compny or not.
Regards
XYZ
From India, Gurgaon
Dear Anil,
Five years completion is necessary to become eligoble for gratuity.
You stated that company depositing gratuity amount to the authority,there is no authority formed by Govt to deposit gratuity amount,the employer is liable to pay gratuity to its employee which is a legal requirement.
Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 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 (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of 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 full year.
15 = 15 days salary
26 = No. of working days in a month.
Best Regards
Global Overseas-Delhi office
Mohammad Sajid Ansari
9899775578
From India, Gurgaon
5Five years completion is necessary to become eligoble for gratuity.
You stated that company depositing gratuity amount to the authority,there is no authority formed by Govt to deposit gratuity amount,the employer is liable to pay gratuity to its employee which is a legal requirement.
Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 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 (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of 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 full year.
15 = 15 days salary
26 = No. of working days in a month.
Best Regards
Global Overseas-Delhi office
Mohammad Sajid Ansari
9899775578
From India, Gurgaon
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Mettur Beardsell Ltd Vs RLC (Cent) & otrs 1998 LLR 1072 about Gratuity Entitlement.pdf
Gratuity Form I.doc