240 days comes 8 months.
Well, 5years completion is still in the act and not amended.
In last year, madras high court judgment, 4.6yrs. enough for calculation of Gratuity continues rendering of service and resigned/retired so this judgment is working in state but not incorporated/ amendment in said Gratuity Act not amended as per the judgment so 5years of continues service is essential condition to again gratuity.
Excluding the states of Gratuity judgement, other establishments of other states can only pay gratuity when employee completes continues of 5yrs. Of service.
From India, Ahmadabad
73Well, 5years completion is still in the act and not amended.
In last year, madras high court judgment, 4.6yrs. enough for calculation of Gratuity continues rendering of service and resigned/retired so this judgment is working in state but not incorporated/ amendment in said Gratuity Act not amended as per the judgment so 5years of continues service is essential condition to again gratuity.
Excluding the states of Gratuity judgement, other establishments of other states can only pay gratuity when employee completes continues of 5yrs. Of service.
From India, Ahmadabad
Dear All,
Now a day all the company is included Gratuity in CTC. They are deducting this amount Basic.
Gratuity is additional amount (Compensation) amount which is payable by the company who are eligible.
If any guideline for this please do the needful
Thnx
From India, Bharuch
Now a day all the company is included Gratuity in CTC. They are deducting this amount Basic.
Gratuity is additional amount (Compensation) amount which is payable by the company who are eligible.
If any guideline for this please do the needful
Thnx
From India, Bharuch
Dear Binal,
You are right, Gratuity is falling as a part of CTC, but not deducting from Gross Salary.
Companies are Adding Gratuity to the Gross Salary as a part of CTC as he is expecting him to work for him for a long period.
If an employee works for him for 5 yrs and leaving after 5 yrs, Employer is going to pay him Gratuity as per the Calculation, it is a cost to the company incurring on an employee, that he is showing today and paying tomorrow.
If I am wrong in this, correct me/share your knowledge.
From India, Hyderabad
You are right, Gratuity is falling as a part of CTC, but not deducting from Gross Salary.
Companies are Adding Gratuity to the Gross Salary as a part of CTC as he is expecting him to work for him for a long period.
If an employee works for him for 5 yrs and leaving after 5 yrs, Employer is going to pay him Gratuity as per the Calculation, it is a cost to the company incurring on an employee, that he is showing today and paying tomorrow.
If I am wrong in this, correct me/share your knowledge.
From India, Hyderabad
hi,
As per Gratuity Act, one has to complete minimum period of service of 5 years in the organisation to become eligible for gratuity under the Act. The rounding of above 6 months can be taken into account once employee is eligible for gratuity. In your case, since you have completed 4 years and 8 months, you are not eligible for gratuity under Act. However, there are cases where private organisation not fully knowing the Act, make the payment of gratuity if an employee has completed 4 years and more than 6 months taking it as 5 years.
From India, Mumbai
As per Gratuity Act, one has to complete minimum period of service of 5 years in the organisation to become eligible for gratuity under the Act. The rounding of above 6 months can be taken into account once employee is eligible for gratuity. In your case, since you have completed 4 years and 8 months, you are not eligible for gratuity under Act. However, there are cases where private organisation not fully knowing the Act, make the payment of gratuity if an employee has completed 4 years and more than 6 months taking it as 5 years.
From India, Mumbai
Dear Friends this attachment will helpful to you. this is the judgement of Madaras High court.
From India, Ahmadabad
From India, Ahmadabad
As per the gratuity act one has to complect 240 days every year continuously five year. If you worked 240 days continuously five years then you are eligible for gratuity.
For calculation purpose we need your last drawn basic to calculate the gratute.
Calculation formula. = basic / 26 x 15 x no of complected year of service.
From United States, New York
For calculation purpose we need your last drawn basic to calculate the gratute.
Calculation formula. = basic / 26 x 15 x no of complected year of service.
From United States, New York
As per the provision of the Act those who complete 5 years continuous service only will be eligible to claim Gratuity. In your case it does not apply. However Act does not prevent the employer paying gratuity (employer can pay in the name of ex-gratia instead of calling it as Gratuiry) for those who complete less than 5 years.
Murugesan R
From India, Chennai
Murugesan R
From India, Chennai
Dear Mr.Aroop,
With reference to your query on the above subject,pl.refer Sec 4 for eligibility of an employee to receive gratuity under the provisions of Payment of Gratuity Act -1972 Rules.It means any employee who has rendered 5 years continuous service at the time of leaving the organisation, retirement, Super Annuation or any contract between the employer and employee.The continuous service of 5 years is not required except in the case of death or disablement of employee.For every completed year or part there of in excess of six months gratuity is payable @ 15 days wages last drawn by the employee. Continuous service means the employee has completed 240 days of work in a calender year. In this connection you are eligible to receive gratuity after 16/03/2013. Based upon your resignation date including notice period also you are not eligible for gratuity.
For further information, pl.feel free to talk with me.
Thanks & Regards
V R RAO PULIPAKA
9248002899
From India, Chennai
With reference to your query on the above subject,pl.refer Sec 4 for eligibility of an employee to receive gratuity under the provisions of Payment of Gratuity Act -1972 Rules.It means any employee who has rendered 5 years continuous service at the time of leaving the organisation, retirement, Super Annuation or any contract between the employer and employee.The continuous service of 5 years is not required except in the case of death or disablement of employee.For every completed year or part there of in excess of six months gratuity is payable @ 15 days wages last drawn by the employee. Continuous service means the employee has completed 240 days of work in a calender year. In this connection you are eligible to receive gratuity after 16/03/2013. Based upon your resignation date including notice period also you are not eligible for gratuity.
For further information, pl.feel free to talk with me.
Thanks & Regards
V R RAO PULIPAKA
9248002899
From India, Chennai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc