1. Is gratuity been given by employer OR will it be deducted in employee\'s salary and given back to employee after completing 5yrs ?
2. Suppose an employee completed 2yrs and till then employer has not deducted the gratuity amount from employee salary. Can the employer ask employee now to payback the gratutity amount of past 2yrs which will only be given after completing 5 yrs ?

From United States, Cambridge
its been paid by the Employer after completion of 5 yrs of continues service. there is no deduction from employee.
From India, Bangalore
Hi Subha
Gratuity is a lumpsum amount given by an employer computed as per the formula under the Gratuity Act at the time of resignation or retirement or disability etc. provided the employee has completed a continuous service of five years. It is not subject to any deduction from the employee's salary.
B.Saikumar
HR & Labour Law Advisor
Mumbai
09930532927

From India, Mumbai
Hellow Dear, Do you have any idea of gratuity premium paid by employer?What is the formula of Gratuity deduction from employer? Ganesh
From India, Jamshedpur
Dear Subha,
Your answers in BOLD.
1. Is gratuity been given by employer OR will it be deducted in employee\'s salary and given back to employee after completing 5yrs ?
Gratuity is a retrial benefit paid by the employer when the employee serves minimum 5 yrs in the organisation. The employee will not be deducted any amount for gratuity.
2. Suppose an employee completed 2yrs and till then employer has not deducted the gratuity amount from employee salary. Can the employer ask employee now to payback the gratutity amount of past 2yrs which will only be given after completing 5 yrs ?
There is no question of employee paying for gratuity. Employer is only liable to pay the gratuity amount to the employee if the employee serves 5 yrs in the organisation.
Gratuity will be paid by the employer as follows
Last drawn Basic + DA / 26 * 15 * No of years (Minimum 5 yrs)

From India, Mumbai
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