Dear All, If Gratuity is covered in our CTC which is shown in our salary package at that time is it compulsory to complete the 5 years???????:?: Please Advise……. With Regards, Sudam Vanarse
From India, Pune
1From India, Pune
I was told by my HR that if I did not continue for 5 years, the gratuity which is part of my CTC, will be deposited to Govt. I can’t withdraw if the period of service is less than 5 yrs.
From India, Lucknow
From India, Lucknow
dear just employer increase your ctc.whateer statment given by HR in your case is not correct.regards j s malik
From India, Delhi
From India, Delhi
To become eligible to receive gratuity one has to complete 5 years continuous service.
Employer if included this benefit in ctc he may be making a provision for the same. However, if the employee discontinues service before completion of 5 years Employer may not be liable to pay gratuity or deposit the provided amount anywhere.
regards
madhav
From India, Mumbai
Employer if included this benefit in ctc he may be making a provision for the same. However, if the employee discontinues service before completion of 5 years Employer may not be liable to pay gratuity or deposit the provided amount anywhere.
regards
madhav
From India, Mumbai
Hi
As far as I know if Gratuity is a part of your CTC and the company is deducting the same from your salary then the company has to pay back the total amount deducted if the employee leaves before 5 years of service with the organization.
Malik Sir please let me know if Im wrong.
Regards,
Suparna
From India, New Delhi
As far as I know if Gratuity is a part of your CTC and the company is deducting the same from your salary then the company has to pay back the total amount deducted if the employee leaves before 5 years of service with the organization.
Malik Sir please let me know if Im wrong.
Regards,
Suparna
From India, New Delhi
Dear Friends, The person should completed 5 years of service in PF only Eligible for GRATUITY....
From India, Madras
From India, Madras
Dear Friends,
It has been already discussed in our HR cite.Mr.Malik had given a clear statement about the gratuity which has been included by employer in the CTC.The gratuity is applicable when the employee completes his 5 years of continuous service in the organization.
Some Hint points about Payment of Gratuity:
Gratuity paid for faithful continuous service in the organization
Payable on completing 5 years of continuous service with the organization
Includes probation period
The above rule is waived of in the eventuality of
Death
Permanent disablement
Payment of Gratuity:
Gratuity can be paid to an employee when
He is superannuated
Resigned/ retired after 5 years of continuous service
Permanent disablement
Death
Calculation for Gratuity:
The formula for calculating gratuity is as follows –
[(Salary*15)/26]*service period
Where,
Salary = Basic + DA
Taxability:
Not taxable up to the ceiling of 3.5 lakhs.
Any amount above the same will be taxable.
The ceiling is applicable only once during the entire service period
e.g.: If the person changes his job more than once, then he will avail the benefit of tax savings upto 3.5 lakh only once.
Withdrawal of gratuity:
Non-transferable
The LIC draws a cheque in the favor of the organization/ Gratuity Trust
In turn draws cheque in favor of the employee
Warmest Regards,
Mohan.M.S
From India, Madras
It has been already discussed in our HR cite.Mr.Malik had given a clear statement about the gratuity which has been included by employer in the CTC.The gratuity is applicable when the employee completes his 5 years of continuous service in the organization.
Some Hint points about Payment of Gratuity:
Gratuity paid for faithful continuous service in the organization
Payable on completing 5 years of continuous service with the organization
Includes probation period
The above rule is waived of in the eventuality of
Death
Permanent disablement
Payment of Gratuity:
Gratuity can be paid to an employee when
He is superannuated
Resigned/ retired after 5 years of continuous service
Permanent disablement
Death
Calculation for Gratuity:
The formula for calculating gratuity is as follows –
[(Salary*15)/26]*service period
Where,
Salary = Basic + DA
Taxability:
Not taxable up to the ceiling of 3.5 lakhs.
Any amount above the same will be taxable.
The ceiling is applicable only once during the entire service period
e.g.: If the person changes his job more than once, then he will avail the benefit of tax savings upto 3.5 lakh only once.
Withdrawal of gratuity:
Non-transferable
The LIC draws a cheque in the favor of the organization/ Gratuity Trust
In turn draws cheque in favor of the employee
Warmest Regards,
Mohan.M.S
From India, Madras
Mr.Mohan,
Thanks for the clarity. My question is the gratuity which is shown as part of CTC and also very clearly stated in the appointment letter, where the fund will be deposited if the employee leaves an organisation before the mandatory 5 yrs. As far as the employer is concerned, already they have taken into account the provision of cost to the company. Who is the beneficiary if the employee does not fulfil the eligibility criteria of receiving the gratuity amount? whether it is employer or govt. The employer can not retain the gratuity payable to the employee as it was already declared in the appt. letter.
From India, Lucknow
Thanks for the clarity. My question is the gratuity which is shown as part of CTC and also very clearly stated in the appointment letter, where the fund will be deposited if the employee leaves an organisation before the mandatory 5 yrs. As far as the employer is concerned, already they have taken into account the provision of cost to the company. Who is the beneficiary if the employee does not fulfil the eligibility criteria of receiving the gratuity amount? whether it is employer or govt. The employer can not retain the gratuity payable to the employee as it was already declared in the appt. letter.
From India, Lucknow
Can we take any legal action against employer if he not ready to pay the deducted amount? Regards, Shishir
From India, Madras
From India, Madras
Mr.Pon,
Can you able to send the scanned copy of your appointment letter so that i can have a clear idea.The gratuity act is applicable only when the employee completes continuous service of 5 years so that you cannot able to take any action against the employer.
Warmest Regards,
Mohan.M.S
From India, Madras
Can you able to send the scanned copy of your appointment letter so that i can have a clear idea.The gratuity act is applicable only when the employee completes continuous service of 5 years so that you cannot able to take any action against the employer.
Warmest Regards,
Mohan.M.S
From India, Madras
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HC All - Trainees not covered for PF -2010.pdf
Gratuity Form I.doc