This is acceptable that, As per Gratuity Act- After completion of 5 years of uninterrupted service , the employee will get the gratuity
But........
If the management wishes , they may give after completion of 2 years also ( for that they have to do the Resolution with the Insurance Company)
For CTC Circle , Gratuity may add up ( That amount should be purely from Employer Side)
Whatever the Gratuity amount is Reimbursed ( > 5 Years or As per Resolution ) is paid by the EMPLOYER Annually as Renewal of premium amt. to the Insurance Company.
The Gratuity Formula is given below:
Last Basic+ DA ( Ex. 10,000/-)
I.e Rs.10,000 X 15 Days X 5 ( No. of year of Service) / 26 Days
=28,846/-( Total Amt. for 5 Years of Service)
* 5,769/- ( For 1 Year )
* 481/- ( For 1 Month) I.e at the rate of 4.81% {Some companies may add this for CTC Circle )
If anything info. is Missed out or want to add more . you may please.
Thanks & Regards,
Avinash Kumar.k
From India, Bangalore
5But........
If the management wishes , they may give after completion of 2 years also ( for that they have to do the Resolution with the Insurance Company)
For CTC Circle , Gratuity may add up ( That amount should be purely from Employer Side)
Whatever the Gratuity amount is Reimbursed ( > 5 Years or As per Resolution ) is paid by the EMPLOYER Annually as Renewal of premium amt. to the Insurance Company.
The Gratuity Formula is given below:
Last Basic+ DA ( Ex. 10,000/-)
I.e Rs.10,000 X 15 Days X 5 ( No. of year of Service) / 26 Days
=28,846/-( Total Amt. for 5 Years of Service)
* 5,769/- ( For 1 Year )
* 481/- ( For 1 Month) I.e at the rate of 4.81% {Some companies may add this for CTC Circle )
If anything info. is Missed out or want to add more . you may please.
Thanks & Regards,
Avinash Kumar.k
From India, Bangalore
Are you an employee from whose salary contribution towards gratuity is deducted, or an HR professional, who are deducting contribution from salaries of employees towards gratuity?
I wonder, probably your company is doing business in contravantion of service laws!
From India, Delhi
I wonder, probably your company is doing business in contravantion of service laws!
From India, Delhi
The Payment of Gratuity Act clearly provides that if the terms of the company are beneficial than the provisions of the Act, an employee has the right to receive that. The companies are free to allow gratuity even before completion of 5 years of service.
The Act provides for only the barest minimum, which the companies must observe and not to allow less than that provided by law.
From India, Delhi
The Act provides for only the barest minimum, which the companies must observe and not to allow less than that provided by law.
From India, Delhi
Dear All, Now we know that, a person has completed 4 yrs 9 months of his service is eligible for Gratuity...
From India, Mumbai
From India, Mumbai
I agree with Mr Vasant Nair. There is NO deductions for the Gross for Gratuity. However, the CTC may include the Gratuity element - 4.81% (or round-off to 5%) of the Basic Pay. Rajusiachen
From India, Coimbatore
From India, Coimbatore
Dear All, Kindly let me know that gratuity amount is tax exempted or not and In CTC is necessary to deduct 4.81% from monthly salary. Thanks & regards,
From India, Ambala
From India, Ambala
Dear All It will be calculated as per: (last drawn Basic Salary/26*15)*No.of Years worked any employee should have to do work atleast for 4 years & 240 days. Regards: Manoj Garg 09988878006
From India, Chandigarh
From India, Chandigarh
If gratuity is part of CTC, then 4.81% of basic salary. Now gratuity limit is Rs. 10 lakhs.
From India, Indore
From India, Indore
Dear All,
I have a problem. We are working in a Society which is running 10 different educational institutes in bengal. One of our staff was transferred from head office to another institute under its control after completing 4 years of service. Then he transferred to our another institute in the year 2006. What will be the solution to him in case of gratuity?
Regards - Pulak
From India, Calcutta
I have a problem. We are working in a Society which is running 10 different educational institutes in bengal. One of our staff was transferred from head office to another institute under its control after completing 4 years of service. Then he transferred to our another institute in the year 2006. What will be the solution to him in case of gratuity?
Regards - Pulak
From India, Calcutta
Sir,
I am working as a Manager - HR in a Engineering firm at Cuddolre, before I am Joining one PF case is going on. That is In my firm did not deduct PF for 40 casual empolyees. They were engaged by the contractor. When the E.O came for inspection, he found the mistake and he noticed to Sub Regional EPF office also. We received a hearing notice from Sub Regional office and they Demand the balance sheet, ledger and cashbook etc. My question is what they verify in the balnce sheet? I think the are verifying the Payments and Wages. How we can show our balance sheet and others.
S.S.Raj
From India, Madras
I am working as a Manager - HR in a Engineering firm at Cuddolre, before I am Joining one PF case is going on. That is In my firm did not deduct PF for 40 casual empolyees. They were engaged by the contractor. When the E.O came for inspection, he found the mistake and he noticed to Sub Regional EPF office also. We received a hearing notice from Sub Regional office and they Demand the balance sheet, ledger and cashbook etc. My question is what they verify in the balnce sheet? I think the are verifying the Payments and Wages. How we can show our balance sheet and others.
S.S.Raj
From India, Madras
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
Security Amount Proof.docx