Hi, My company is showing gratuity as a part of my CTC @ 4.7% on basic salary. Hence if I resign after completion of my 5 years tenure will I be getting the amount with interest?
From India, Hyderabad
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From India, Hyderabad
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Gratuity is not 4.7% of the basic salary, and it should not be deducted from your salary. Perhaps your company includes it in the Cost to Company (CTC) calculation. After completing 5 years in your company, when you retire, you are entitled to an amount calculated as follows:
Basic salary at the time of retirement / 26 days x 15 x Number of years you served.
This means you will receive 15 days of basic salary for each year of service. For example, if your basic salary at the time of resignation is Rs. 10,000/-, then your per day basic salary will be Rs. 384/- x 15 days = Rs. 5769/- x number of years you served = gratuity amount.
From India, Chennai
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153Basic salary at the time of retirement / 26 days x 15 x Number of years you served.
This means you will receive 15 days of basic salary for each year of service. For example, if your basic salary at the time of resignation is Rs. 10,000/-, then your per day basic salary will be Rs. 384/- x 15 days = Rs. 5769/- x number of years you served = gratuity amount.
From India, Chennai
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The concept of gratuity is that a person who has worked for 5 years or more continuously in an establishment covered under the Payment of Gratuity Act 1972 gets gratuity (payment of a part of the salary as gratitude by the employer for service done by the employee). It can also be called a defined benefit scheme for employees completing 5+ years of service in an establishment. Gratuity is like a right to property and cannot be denied except under certain very specific circumstances. The formula for gratuity has been given by a learned member in his post. Do read the original act and get more information.
From India, Pune
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From India, Pune
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CTC of 4.7% is considered to offset the eventual payment of gratuity, if any.
If the terms of appointment are not clear, such an amount will not be refunded to you in case you work for less than 5 years because you will not be entitled to receive gratuity as per the act.
From India, Mumbai
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If the terms of appointment are not clear, such an amount will not be refunded to you in case you work for less than 5 years because you will not be entitled to receive gratuity as per the act.
From India, Mumbai
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Dear Friends,
If the gratuity amount is shown as a part of my CTC in both my appointment letter and my increment letter, and if I leave in 3-4 years, will I be entitled to get back my gratuity?
I believe YES, as it's a part of my CTC.
Please provide your feedback.
From India, New Delhi
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If the gratuity amount is shown as a part of my CTC in both my appointment letter and my increment letter, and if I leave in 3-4 years, will I be entitled to get back my gratuity?
I believe YES, as it's a part of my CTC.
Please provide your feedback.
From India, New Delhi
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Company Letter for Completion 01 Month Notice.docx
FORM-F-NOMINATI ON OF GRATUITY.pdf