Our company has 4 employees, and the location is Rajkot. I have completed 6 years in the same company, so please let me know if I am eligible for gratuity. If not, what other benefits does the company provide? Additionally, the company does not provide any salary slips.
From India, Mumbai
Acknowledge(0)
Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hello,
As per the Gratuity Act of 1972, Section 4 states that gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years. This includes scenarios such as (a) superannuation, (b) retirement or resignation, or (c) death or disablement due to accident or disease.
In simple terms, an employee who has completed a minimum of 5 years of continuous service is eligible for gratuity. Therefore, in your case, as you mentioned completing 6 years in the same company, you are entitled to receive gratuity, regardless of whether your company provides a salary slip or not.
For your information, the amount of gratuity can be calculated using the following formula:
Gratuity = Number of completed years in the company X Latest Basic Salary + DA X 15/26
Example:
Suppose your last basic salary + DA was Rs 25,000/-.
Gratuity = 6 X 25000 X 15/26 = Rs 86,539/-
You can also refer to my previous comment at https://www.citehr.com/579506-gratui...ml#post2342470
From India, Ahmedabad
Acknowledge(0)Amend(0)
4As per the Gratuity Act of 1972, Section 4 states that gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years. This includes scenarios such as (a) superannuation, (b) retirement or resignation, or (c) death or disablement due to accident or disease.
In simple terms, an employee who has completed a minimum of 5 years of continuous service is eligible for gratuity. Therefore, in your case, as you mentioned completing 6 years in the same company, you are entitled to receive gratuity, regardless of whether your company provides a salary slip or not.
For your information, the amount of gratuity can be calculated using the following formula:
Gratuity = Number of completed years in the company X Latest Basic Salary + DA X 15/26
Example:
Suppose your last basic salary + DA was Rs 25,000/-.
Gratuity = 6 X 25000 X 15/26 = Rs 86,539/-
You can also refer to my previous comment at https://www.citehr.com/579506-gratui...ml#post2342470
From India, Ahmedabad
Acknowledge(0)Amend(0)
But some persone told me that company have minimum 10 employee but our company have only 4 employee.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
An employee will be covered under the Act if the organization employs at least 10 persons on a single day in the preceding 12 months. Once an organization comes under the purview of the Gratuity Act, it will always remain covered even if the number of employees falls below 10.
Therefore, you may not be entitled to gratuity.
From India, Pune
Acknowledge(0)Amend(0)
Therefore, you may not be entitled to gratuity.
From India, Pune
Acknowledge(0)Amend(0)
You have to serve at least 5 years in a company to get gratuity payment. A Madras High Court ruling held that you can avail gratuity if you have completed 240 days of service in the fifth year. It is best to check with the HR of your company about this.
However, if someone dies while in service, the gratuity amount will be paid to their legal heir even if they have not completed 5 years of service. In addition, the amount received by a nominee/heir will not be taxed.
From India, Champapet
Acknowledge(0)Amend(0)
However, if someone dies while in service, the gratuity amount will be paid to their legal heir even if they have not completed 5 years of service. In addition, the amount received by a nominee/heir will not be taxed.
From India, Champapet
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Legal Clarification on Absconding Employee, Contract Labour Engagement & Leave Entitlement Ammen.pdf
Employee Benefits.doc