Dear Sir,I had recently worked in a reputed company in Chennai for abt 9 months and left for Middle East job due to financial commitments. My CTC offered in Chennai included Gratuity with monthly deduction and hence I was requesting for the gratuity amt due to me which is part of my CTC during my final settlement but they did not pay me and informed that I am not eligible for it. Kindly clarify whether i can claim for it, if so, any procedure for it. Thanks in advance.
From United Arab Emirates
From United Arab Emirates
Dear Vmpraj,
Gratuity is usually given to employees with longer service tenure (more than 5 years of service).
Since you are resigning your employment in a very short tenure of 9 months only, you are not eligible for Gratuity as per the Gratuity act.
It is a common practice to include Gratuity in the CTC of the employee. However I fail to understand when you mention there were some monthly deductions from your salary. Can you clarify this please. Can you state what was mentioned in your salary slip and appointment letter.
From India, Mumbai
377Gratuity is usually given to employees with longer service tenure (more than 5 years of service).
Since you are resigning your employment in a very short tenure of 9 months only, you are not eligible for Gratuity as per the Gratuity act.
It is a common practice to include Gratuity in the CTC of the employee. However I fail to understand when you mention there were some monthly deductions from your salary. Can you clarify this please. Can you state what was mentioned in your salary slip and appointment letter.
From India, Mumbai
Dear Sir/Madam
Thank u for your prompt response. Actually my annual CTC was INR 5.6 lakhs with monthly salary of Rs.47000/- (gross) and after PF, Medical, Gratuity etc, my take home monthly salary was Rs.40000/-.
Kindly note that Gratuity amount was mentioned as Retiral Benefits (Annual) in my AO, thereby resulting a reduction of Rs.1000/- in my monthly take home salary for abt 9 months.
Please clarify whether I can claim this amount which is a part of my salary.
Thanks in advance.
From United Arab Emirates
Thank u for your prompt response. Actually my annual CTC was INR 5.6 lakhs with monthly salary of Rs.47000/- (gross) and after PF, Medical, Gratuity etc, my take home monthly salary was Rs.40000/-.
Kindly note that Gratuity amount was mentioned as Retiral Benefits (Annual) in my AO, thereby resulting a reduction of Rs.1000/- in my monthly take home salary for abt 9 months.
Please clarify whether I can claim this amount which is a part of my salary.
Thanks in advance.
From United Arab Emirates
Dear Vmpraj74,
My answer to your query is as under:
Gratuity is payable by employer as per POG Act. As per this Act, gratuity is payable at the time of leaving the service after putting minimum 5 years. Since you worked for 9 months, you are not entitled for gratuity from your employer.
Now I am coming to the aspect of gratuity is included in CTC.
You said that the CTC offered by your employer included Gratuity with monthly deduction towards it.
I will say that you are projecting it wrongly. Probably it may not be your mistake. It may be a mistake of your HR who himself has not understood the concept of CTC and projected you wrongly.
I agree that there is a reduction in your take home salary but CTC is not a salary to you and it is a cost to the company.
Employer has to make provision for your gratuity from beginning of your employment by investing in Gratuity fund. Of course he gets set off and set on when any member leaves and any member newly joins every year while computing the fund. But this calculation he does not aware of. This calculation is done by actuarial. Therefore if he includes gratuity in CTC, I will not say that he is wrong. I am also not an advocate for adding gratuity in CTC by employer. This topic is entirely different one and out of context here.
This kind of unpleasant scene I always see. I blame HR person for this. It is his failure. He is not trying to understand the concept of CTC. Answer he has every time, my boss / employer told me to deduct the gratuity from your salary.
On this forum also I tried to tell about the concept of CTC to HR professionals on many occasion. But I regret, there were invariably counter discussions meaningless / vagueness only.
If I am mistaken not, in one of my postings I had suggested the members to give a foot note to CTC stating gratuity though it is considered in CTC, payable to employee on his leaving after completion of 5 years of service.
Hope my discussion is not meaningless here.
From India, Mumbai
My answer to your query is as under:
Gratuity is payable by employer as per POG Act. As per this Act, gratuity is payable at the time of leaving the service after putting minimum 5 years. Since you worked for 9 months, you are not entitled for gratuity from your employer.
Now I am coming to the aspect of gratuity is included in CTC.
You said that the CTC offered by your employer included Gratuity with monthly deduction towards it.
I will say that you are projecting it wrongly. Probably it may not be your mistake. It may be a mistake of your HR who himself has not understood the concept of CTC and projected you wrongly.
I agree that there is a reduction in your take home salary but CTC is not a salary to you and it is a cost to the company.
Employer has to make provision for your gratuity from beginning of your employment by investing in Gratuity fund. Of course he gets set off and set on when any member leaves and any member newly joins every year while computing the fund. But this calculation he does not aware of. This calculation is done by actuarial. Therefore if he includes gratuity in CTC, I will not say that he is wrong. I am also not an advocate for adding gratuity in CTC by employer. This topic is entirely different one and out of context here.
This kind of unpleasant scene I always see. I blame HR person for this. It is his failure. He is not trying to understand the concept of CTC. Answer he has every time, my boss / employer told me to deduct the gratuity from your salary.
On this forum also I tried to tell about the concept of CTC to HR professionals on many occasion. But I regret, there were invariably counter discussions meaningless / vagueness only.
If I am mistaken not, in one of my postings I had suggested the members to give a foot note to CTC stating gratuity though it is considered in CTC, payable to employee on his leaving after completion of 5 years of service.
Hope my discussion is not meaningless here.
From India, Mumbai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc