The Component of gratuity should be calculated from date of joining or date of confirmation? From when does the liability of the company to pay an employee becomes mandatory? what if employee leaves before that period?
From India, Mumbai
From India, Mumbai
Gratuity is payable to employees who have completed 5 years of continuous service.Gratuity is payable from Date of joining i.e. date of probation (training, contract, retainership basis are not considered.) This should be mentioned in HR Policy of the company and appointment letter issued to employee.Gatuity is calculated as = Last drawn (Basic+DA) x 15/26 x No. of year of continus. completed service It can be a component in CTC.If employee leaves before 5 years Gratuity is not payable.Gratuity upto Rs.3.50 lacs is not taxable.LIC is having a good Group Gratuity Scheme.Payment of Gratuity is a statutory requirement.See attachment.ThanksRegardsPari.
From India, Mumbai
19From India, Mumbai
Thank You very much Pari. But a small confusion still...If the company policy decides the payment of gratuity from Date of Joining than what if the company decides to start such date for gratuity calculation from Confirmation date? I s it mandatory to calculate gratuity from date of joining? under which clause?
From India, Mumbai
From India, Mumbai
Gratuity payable under the Gratuity Act. Calculation of Years get starts from the Date of Joining. Its complusary/mandatory to pay Gratuity (Social Welfare) at the time of Leaving the job or retirement. Basic criteria is completion of 5yrs.
From India, Ahmadabad
From India, Ahmadabad
Dear Pari,
thanks for the good information. as u mentioned gratuity is payable from the date of joining. Also mentioned should be included in HR policy by the co.
my query is:
is it not mandatory for the co. as per Gratuity Act.
pls reply
Regards,
Ganesh Nautiyal
From India, Gurgaon
thanks for the good information. as u mentioned gratuity is payable from the date of joining. Also mentioned should be included in HR policy by the co.
my query is:
is it not mandatory for the co. as per Gratuity Act.
pls reply
Regards,
Ganesh Nautiyal
From India, Gurgaon
Hi AllGratuity is also paid to the employees who have not completed 5 years tenure with the organization. For eg if you see in Banking sector ICICI Bank follows the norm of paying it after 5 years but if you compare it with Reliance they will calculate it from the day you have become the part of the organization till you last day and the same amount will br reimbursed to you with F&F amount.Please update me in case if there is any updations on the same.RegardsTina Vij
From India, Mumbai
From India, Mumbai
HELLO As per Gratuity Act 1972 . MORE THAN SIX MONTHS TREATED AS I YEAR SO U CAN CLAIM THE AMOUNT . VIJAY HUAMN RESOURCFES OFFICER
From India, Mumbai
From India, Mumbai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc