If a person has worked for a Company for three years (e..g Jan 2012 to Dec 2015) where the policy was to give only PF. In Jan 2016 the person leaves but the Company policy has changed (in July 2015) and now they give only gratuity. Will this employee get 6 months gratuity or not as he / she is entitled to get 2.5 years PF already accumulated?
From Pakistan, Karachi
From Pakistan, Karachi
Gratuity and Provident Fund are two different social security measures. You cannot have a policy wherein you have only either PF or gratuity. PF is an amount invested in the Provident Fund and is returned to the employee when he leaves. It is returned irrespective of time he spent in the company. At the same time, gratuity is available to the employee when he leaves the company after completing a certain period of service, ie, 5 years. You can not stop paying PF and say that now onwards you will have gratuity only. These are two separate rules. If you have worked for 3 years or 4 years, you can either withdraw the PF or transfer the same to the new PF account opened at the organisation where you join after leaving this company. Since you have worked for less than 5 years, you cannot have gratuity from the company.
What is the significance of 6 months’ gratuity is not to me because gratuity is payable once an employee leaves the company after completing 5 years with the company. Again I don’t know why is it 2.5 years when you have contributed PF for 4 years (Jan 2012 to Dece 2015)
Madhu.T.K
From India, Kannur
4238What is the significance of 6 months’ gratuity is not to me because gratuity is payable once an employee leaves the company after completing 5 years with the company. Again I don’t know why is it 2.5 years when you have contributed PF for 4 years (Jan 2012 to Dece 2015)
Madhu.T.K
From India, Kannur
If the company has twenty employees both EPF and gratuity shall be paid.If it has only ten employees only gratuity is applicable. The policy is immaterial.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Varghese
I would like to rephrase that :
1. If you have less than 10 employees, neither pf nor gratuity applies
2. If you have less than 20 employees (but more than 10) then gratuity is payable to all employees who work for more than 4 years and 9 months
3. If you have more than 19 employees, then pf is compulsory. Your company has to register and deposit pf amount in the account for each person working. And gratuity of course as you are more than 10 employees anyway.
Even if pf was not compulsory but the company deducted it, then you are eligible to get it back with interest @8.5% per annum
From India, Mumbai
I would like to rephrase that :
1. If you have less than 10 employees, neither pf nor gratuity applies
2. If you have less than 20 employees (but more than 10) then gratuity is payable to all employees who work for more than 4 years and 9 months
3. If you have more than 19 employees, then pf is compulsory. Your company has to register and deposit pf amount in the account for each person working. And gratuity of course as you are more than 10 employees anyway.
Even if pf was not compulsory but the company deducted it, then you are eligible to get it back with interest @8.5% per annum
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc