Mr.Janardhan & Mr.Umakanthan.M,
Thank you for clear cut explanation on the above issue . Please clarify the gratuity amount payable to an employee who has completed 8 years, 7 months and 12 days. As per my knowledge we have to pay for 9 years. But few have expressed for 8 years. can you or any one else please let me know what exact amount has to be paid.
From India, Bangalore
27Thank you for clear cut explanation on the above issue . Please clarify the gratuity amount payable to an employee who has completed 8 years, 7 months and 12 days. As per my knowledge we have to pay for 9 years. But few have expressed for 8 years. can you or any one else please let me know what exact amount has to be paid.
From India, Bangalore
Exemptions
Gratuity Received by a Government Employee:
Fully exempt from tax.
Gratuity received by an employee where Employer is covered by the Payment of Gratuity Act. The least of the following is exempt from Tax.
(last drawn salary) X (number of years in employment) x 15/26
Last drawn salary is Basic salary and DA.
Number of years in service is rounded off to the nearest full year. For example – if you have worked in an organization for 12 years and 2 months, the number of years in employment shall be considered to be 12 years. And in case you have worked for 12 years and 7 months, the number of years in employment shall be considered to be 13 years.
Rs 10,00,000
Gratuity actually received
From India, Gurgaon
Gratuity Received by a Government Employee:
Fully exempt from tax.
Gratuity received by an employee where Employer is covered by the Payment of Gratuity Act. The least of the following is exempt from Tax.
(last drawn salary) X (number of years in employment) x 15/26
Last drawn salary is Basic salary and DA.
Number of years in service is rounded off to the nearest full year. For example – if you have worked in an organization for 12 years and 2 months, the number of years in employment shall be considered to be 12 years. And in case you have worked for 12 years and 7 months, the number of years in employment shall be considered to be 13 years.
Rs 10,00,000
Gratuity actually received
From India, Gurgaon
Dear Sir
Mohan has worked for 8 year in a company .and his basis salary was rs 25000/- and after 6 years they reduced his basic salary up to 18000/- though his gross salary remained same.
now after 8 year mohan has resigned and smoothly given the hand over .
on which basis salary he will get his gratuity .
From India, Mumbai
Mohan has worked for 8 year in a company .and his basis salary was rs 25000/- and after 6 years they reduced his basic salary up to 18000/- though his gross salary remained same.
now after 8 year mohan has resigned and smoothly given the hand over .
on which basis salary he will get his gratuity .
From India, Mumbai
Dear Sir
Mohan has worked for 8 year in a company .and his basis salary was rs 25000/- and after 6 years they reduced his basic salary up to 18000/- though his gross salary remained same.
now after 8 year mohan has resigned and smoothly given the hand over .
on which basis salary he will get his gratuity .
From India, Mumbai
Mohan has worked for 8 year in a company .and his basis salary was rs 25000/- and after 6 years they reduced his basic salary up to 18000/- though his gross salary remained same.
now after 8 year mohan has resigned and smoothly given the hand over .
on which basis salary he will get his gratuity .
From India, Mumbai
Dear Umakanthan.M
My question is that If I joined a company is 2012 & that time they did not have the gratuity benefit & later in 2017 they implemented gratuity in company, in case I leave the company in 2018 & I was entailed in gratuity program from 2017 to 2018 but my total service would be 6 years with company, in this case, will I be eligible to get the gratuity amount or not, If yes then what would be the calculation.
From India, Jaipur
My question is that If I joined a company is 2012 & that time they did not have the gratuity benefit & later in 2017 they implemented gratuity in company, in case I leave the company in 2018 & I was entailed in gratuity program from 2017 to 2018 but my total service would be 6 years with company, in this case, will I be eligible to get the gratuity amount or not, If yes then what would be the calculation.
From India, Jaipur
You are very much entitled for Gratuity from the date of joining till your last working date. The formula for calculating Gratuity is as below :
Your last drawn Basic x 15/26 into No. of working years i.e. 6 years in your case.
From India, Ahmadabad
Your last drawn Basic x 15/26 into No. of working years i.e. 6 years in your case.
From India, Ahmadabad
Dear Satish,
Gratuity is a one time terminal benefit payable by the employer whose establishment is covered under the Payment of Gratuity Act, 1972 to the employee who has completed a certain minimum number of continuous years of service of blemish less nature under the same employer. As such, it can not be a concurrent benefit as long as the employment continues and it comes to fruition only on its termination the nature of which is specifically mentioned in the Act. So, by any stretch of imagination it can not be paid on monthly basis either during the currency of employment or after its termination.
From India, Salem
Gratuity is a one time terminal benefit payable by the employer whose establishment is covered under the Payment of Gratuity Act, 1972 to the employee who has completed a certain minimum number of continuous years of service of blemish less nature under the same employer. As such, it can not be a concurrent benefit as long as the employment continues and it comes to fruition only on its termination the nature of which is specifically mentioned in the Act. So, by any stretch of imagination it can not be paid on monthly basis either during the currency of employment or after its termination.
From India, Salem
Thank You Umakanthan Sir, for your clarification on gratuity. just have one question that as per the employer they are paying Gratuity on monthly basis and gratuity amount showing in employee gross salary. Can employee take any legal action in case of employee resigned and employer not paying gratuity amount.
From India, Mumbai
From India, Mumbai
Dear Satish,
A one time statutory benefit of the Industrial employees linked to certain types of termination of their employment and mandated to be paid by the employer in lump sum can not be paid periodically according to his whims and fancies. Law is a subject to be understood and to be implemented only with reference to the mischief it aims to eradicate and the benefits it intends to confer on the needy at the appropriate phase in their social life. Unfortunately, at times, some people either understand or misunderstand. The case you 've narrated is one of the latter category, I think. In addition it is one of misunderstanding of the concept of C.T.C too. Here the ultimate loser is the employee only for the computation of gratuity under the Payment of Gratuity Act, 1972 is based on the last drawn wages. One may argue that the monthly basis payment clears the eventuality of forfeiture of gratuity in case of dismissal or sudden closure of the undertaking due to losses. That's why the Act provides for compulsory insurance u/s 4 - A and the exercise of forfeiture of gratuity in case of dismissal is strictly governed by the provisions of Section 4(6) as well.
Therefore, it is imperative that the employees of the organization bring it to the notice of the State Chief Labour Commissioner immediately.
Coming to the case of the particular employee, well, he can file a claim before the Controlling Authority under the Act advancing the argument that what was paid along with his monthly emoluments in the name of gratuity was part of the gross wages determined in the contract of employment.
From India, Salem
A one time statutory benefit of the Industrial employees linked to certain types of termination of their employment and mandated to be paid by the employer in lump sum can not be paid periodically according to his whims and fancies. Law is a subject to be understood and to be implemented only with reference to the mischief it aims to eradicate and the benefits it intends to confer on the needy at the appropriate phase in their social life. Unfortunately, at times, some people either understand or misunderstand. The case you 've narrated is one of the latter category, I think. In addition it is one of misunderstanding of the concept of C.T.C too. Here the ultimate loser is the employee only for the computation of gratuity under the Payment of Gratuity Act, 1972 is based on the last drawn wages. One may argue that the monthly basis payment clears the eventuality of forfeiture of gratuity in case of dismissal or sudden closure of the undertaking due to losses. That's why the Act provides for compulsory insurance u/s 4 - A and the exercise of forfeiture of gratuity in case of dismissal is strictly governed by the provisions of Section 4(6) as well.
Therefore, it is imperative that the employees of the organization bring it to the notice of the State Chief Labour Commissioner immediately.
Coming to the case of the particular employee, well, he can file a claim before the Controlling Authority under the Act advancing the argument that what was paid along with his monthly emoluments in the name of gratuity was part of the gross wages determined in the contract of employment.
From India, Salem
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
PMRPY-DEDUCTION -SOLUTION.xls