Dear Sir / Ma'am, Can employer pay gratuity on monthly basis along with salary and the same component shows in salary slip of employee.
In case a person is working in a private company where no of employees are more than 10000 and they are paying gratuity on Monthly basis and same component is Show in salary Slips. In case an employees left the orgnaization after 10 years with last drwan salary is 65000/- whether he can again claim gratuity or not
From India, Lucknow
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In case a person is working in a private company where no of employees are more than 10000 and they are paying gratuity on Monthly basis and same component is Show in salary Slips. In case an employees left the orgnaization after 10 years with last drwan salary is 65000/- whether he can again claim gratuity or not
From India, Lucknow
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An employer cannot pay gratuity on monthly basis. The gratuity is payable only to those employees who have completed 5 years of continuous service with the company. As such, the question of paying it right from the month of joining does not arise.
If the employer has been showing gratuity in the payslips and paying it every month the same is not legally maintainable, and if the employee demands it on his leaving the company after five years, the company would be constrained to pay it.
It is unbelievable that a company employing 10000 employees does not have an HR expert who can guide these basics things.
From India, Kannur
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4756If the employer has been showing gratuity in the payslips and paying it every month the same is not legally maintainable, and if the employee demands it on his leaving the company after five years, the company would be constrained to pay it.
It is unbelievable that a company employing 10000 employees does not have an HR expert who can guide these basics things.
From India, Kannur
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@Madhu-ji
It is not that the company does not have HR expertise. it is that they decided to do this in order to show a higher salary than they are actually willing to pay. They are banking on the fact that most employees will not fight it. If someone does, they will quietly pay it after stonewalling for a couple of years.
@Zaffar, If the company pays gratituity monthly, it becomes a part of salary (basic) of the person and the company is liable to pay gratuity when the person leaves. The law very clearly states that this is a one time payment on separation
From India, Mumbai
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It is not that the company does not have HR expertise. it is that they decided to do this in order to show a higher salary than they are actually willing to pay. They are banking on the fact that most employees will not fight it. If someone does, they will quietly pay it after stonewalling for a couple of years.
@Zaffar, If the company pays gratituity monthly, it becomes a part of salary (basic) of the person and the company is liable to pay gratuity when the person leaves. The law very clearly states that this is a one time payment on separation
From India, Mumbai
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(Fact Checked)-Your understanding is correct. Gratuity, paid monthly, is part of the basic salary. Upon separation, the company still owes gratuity. Good job on this clarity! (1 Acknowledge point)
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Kk-nair
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Madhu.T.K
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Dear Zaffar,
I wish you had mentioned the logic of paying the employee a monthly gratuity. Is it that when the employee eligible for gratuity leaves, the company has to pay a hefty amount? To offset the sudden load on cash flow, does your company wish to pay in advance? If it is so, then let your company enrol for LIC's New Group Gratuity Cash Accumulation Plan. Click on the hyperlink to learn the details of the plan.
Under this plan, every month your company needs to pay a certain amount to LIC. Not only do monthly payments accumulate the corpus, but your company gets interest also. Once the corpus and interest become sufficiently big, your monthly instalment reduces. After a few decades, the corpus becomes so big that even the interest itself takes care of the gratuity and your company does not have to pay monthly instalments either.
In addition to visiting the webpage mentioned above, you may visit the nearest LIC office. The officer concerned will educate you about the payment of the monthly instalment.
Thanks,
Dinesh Divekar
From India, Bangalore
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I wish you had mentioned the logic of paying the employee a monthly gratuity. Is it that when the employee eligible for gratuity leaves, the company has to pay a hefty amount? To offset the sudden load on cash flow, does your company wish to pay in advance? If it is so, then let your company enrol for LIC's New Group Gratuity Cash Accumulation Plan. Click on the hyperlink to learn the details of the plan.
Under this plan, every month your company needs to pay a certain amount to LIC. Not only do monthly payments accumulate the corpus, but your company gets interest also. Once the corpus and interest become sufficiently big, your monthly instalment reduces. After a few decades, the corpus becomes so big that even the interest itself takes care of the gratuity and your company does not have to pay monthly instalments either.
In addition to visiting the webpage mentioned above, you may visit the nearest LIC office. The officer concerned will educate you about the payment of the monthly instalment.
Thanks,
Dinesh Divekar
From India, Bangalore
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(Fact Checked)-The information you've provided about LIC's New Group Gratuity Cash Accumulation Plan is accurate and a great suggestion! Just to clarify, once gratuity is paid, it cannot be claimed again. (1 Acknowledge point)
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Mentioning Gratuity or bonus as a part of monthly wages for computing CTC is OK but to indicate it as a part of monthly salary paid is not going help as the legal liability to pay them again on reaching the due stage still exists even if you have paid it prematurely. Moreover the calculation of gratuity has to be as per the last salary and not the current salary.
From India, Bhopal
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From India, Bhopal
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(Fact Checked)-Your explanation is correct. The employer's liability to pay gratuity upon reaching the due stage isn't waived by premature payment. Gratuity should be calculated per the last drawn salary. Keep contributing! (1 Acknowledge point)
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Abstr-pay-gratu ity.doc
Circular No_04_2016 Payment of Gratuity to the No Work No Pay System workers under Payment of Gr.pdf
CiteHR.AI
(Fact Checked)-Your understanding of gratuity payment is correct as per the Payment of Gratuity Act, 1972. Monthly gratuity isn't legally maintainable. Keep sharing accurate info! (1 Acknowledge point)