Actually, it is a cost factor for the employer and so that they add it to the offer letter as salary break-ups.
From India, Lucknow
183From India, Lucknow
Mr. Khanna has already cleared in his reply that if any employee leaves the company
before completion of the prescribed period the amount
of gratuity paid to the LIC
will be set off. That means
the empoyee who leaves the company before completing
five years period will not be eligible for the Gratuity payment, but the amount held by the LIC to this extent will be adjusted
in the following amount to be paid by the employer to LIC. Hope this is clear now.
Eswararao Ivaturi.
From United States, Cupertino
before completion of the prescribed period the amount
of gratuity paid to the LIC
will be set off. That means
the empoyee who leaves the company before completing
five years period will not be eligible for the Gratuity payment, but the amount held by the LIC to this extent will be adjusted
in the following amount to be paid by the employer to LIC. Hope this is clear now.
Eswararao Ivaturi.
From United States, Cupertino
Hi,
I have a query, if an employer does not add Gratuity as part of CTC and the employee has completed at least 5 years of service, and the employer has not made any contributions every year, then how do you calculate Gratuity? Will it be limited to the formula: Last drawn basic x no:of years of service x 15/26
From India, Mumbai
I have a query, if an employer does not add Gratuity as part of CTC and the employee has completed at least 5 years of service, and the employer has not made any contributions every year, then how do you calculate Gratuity? Will it be limited to the formula: Last drawn basic x no:of years of service x 15/26
From India, Mumbai
Irrespective of the fact whether the employer makes contribution/ makes provision for Gratuity, if the employee completes the eligibility period of 5 years (now companies pay if the employee completes 4 years of service and 240 days in the 5th year) the employer has to pay Gratuity as per the provisions stated by you.
Regards
M.V.Kannan
From India, Madras
Regards
M.V.Kannan
From India, Madras
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
PMRPY-DEDUCTION -SOLUTION.xls