I joined a company on 30th March 2006 and completed 9 years and 5 months. I resigned on 31st August 2015. However, I did not have PF or ESI. Now, my company says that since I am not enrolled in PF or ESI, I am not eligible for gratuity. Is this correct? My last salary was 15,000/- lump sum. What will be the eligible amount?
From India, Delhi
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From India, Delhi
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Dear Kannan, Gratuity has nothing to do with PF & ESI. For 9 years' service with a salary of Rs. 15000/- , gratuity amount is 15000x9x15/26 = Rs. 36,161/-. Abbas.P.S
From India, Bangalore
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530From India, Bangalore
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Hi Kannan, As mentioned in previous thread shared by Abbas, you are entitled to get gratuity of said amt.You can please talk to your HR/manager and avail the benefit. Kannan R
From India, Bangalore
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From India, Bangalore
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Dear Abbisiti,
The amount may be Rs. 77,885/- as per your method. Thanks for your valuable comments. However, the management says that I am not eligible. As per my understanding, every individual who completes 5 years in a firm is eligible for Gratuity.
From India, Delhi
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The amount may be Rs. 77,885/- as per your method. Thanks for your valuable comments. However, the management says that I am not eligible. As per my understanding, every individual who completes 5 years in a firm is eligible for Gratuity.
From India, Delhi
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Based on the limited facts provided by you, I believe that you are eligible for gratuity as you have worked for more than 4 years and 6 months for the company in question. However, you may not be eligible for gratuity if your company has not, at any point during your employment, employed more than 9 employees. Please note that as per section 1 (3) (b) of the Payment of Gratuity Act ("Act"), the Act will apply to every establishment in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
Other reasons for which you may be denied gratuity include termination for any act, willful omission, or negligence causing any damage or loss to, or destruction of, property belonging to the employer. However, your employer will have to prove the aforesaid before denying payment of gratuity to you.
In respect of PF, please note that prior to September 1, 2014, an employer was not required under the law to contribute the employer's contribution towards the PF in respect of employees earning more than INR 6500 per month. However, with effect from September 1, 2014, an employer is required to contribute the employer's contribution towards the PF in respect of all employees earning up to INR 15000. Having said that, it is important to note here that the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 does not apply to an organization that employs fewer than 20 employees.
In light of the above, kindly confirm if the company for which you worked employed the minimum applicable employees, i.e., 10 for gratuity and 20 for PF. If yes, I believe that you are entitled to gratuity and, to some extent, for the PF. In respect of PF, I will need more information about what your salary was during the last nine years prior to September 1, 2014. Did you at any point during your employment with this company receive less than INR 6500?
ESI generally applies to a factory. I assume that you are not employed in a factory, and therefore the ESI Act will not apply to you.
Regards.
From India, Bangalore
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Other reasons for which you may be denied gratuity include termination for any act, willful omission, or negligence causing any damage or loss to, or destruction of, property belonging to the employer. However, your employer will have to prove the aforesaid before denying payment of gratuity to you.
In respect of PF, please note that prior to September 1, 2014, an employer was not required under the law to contribute the employer's contribution towards the PF in respect of employees earning more than INR 6500 per month. However, with effect from September 1, 2014, an employer is required to contribute the employer's contribution towards the PF in respect of all employees earning up to INR 15000. Having said that, it is important to note here that the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 does not apply to an organization that employs fewer than 20 employees.
In light of the above, kindly confirm if the company for which you worked employed the minimum applicable employees, i.e., 10 for gratuity and 20 for PF. If yes, I believe that you are entitled to gratuity and, to some extent, for the PF. In respect of PF, I will need more information about what your salary was during the last nine years prior to September 1, 2014. Did you at any point during your employment with this company receive less than INR 6500?
ESI generally applies to a factory. I assume that you are not employed in a factory, and therefore the ESI Act will not apply to you.
Regards.
From India, Bangalore
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Gratuity calculation.doc
PF CHALLAN & CALCULATION SHEET.xls