I have seen that some pvt.organization shows graduity deduction on salary slip even in the starting of the new joining, is it correct? If in case company is not showing deduction on salary slip and they are not registered so in that case is employee can claim for the graduity amount? please clarify.
From India, Pune
7From India, Pune
Hello Anonymous,
I am in total agreement with the reply of Sh sudinair. He has in nutshell mentioned the provisions existing under the Payment of Gratuity Act. More elaborately the conditions for the eligibility of gratuity are explained below:-
1.Section 3(b) of the Act mentions that every shop or establishment in which ten or more persons are employed are or were employed during preceding twelve months.
2.As per PG (Central) Rule 3, an employer shall submit a notice in Form A to the controlling authority of the area within thirty days of the rules becoming applicable to an establishment,
3.Section 4 of the Act clearly stipulates that gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease.It is provided further that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Some of our members have opined that the gratuity shall not be payable if there is no mentioned of the same in their CTC, but I am of the strong opinion that since it is a STATUTORY DUES, the employer is duty-bound to pay the gratuity to the eligible employees irrespective of the fact that (i) whether the component of gratuity has been included in the CTC or not and (ii) a notice in Form A to the controlling authority of the area has been submitted or not.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I am in total agreement with the reply of Sh sudinair. He has in nutshell mentioned the provisions existing under the Payment of Gratuity Act. More elaborately the conditions for the eligibility of gratuity are explained below:-
1.Section 3(b) of the Act mentions that every shop or establishment in which ten or more persons are employed are or were employed during preceding twelve months.
2.As per PG (Central) Rule 3, an employer shall submit a notice in Form A to the controlling authority of the area within thirty days of the rules becoming applicable to an establishment,
3.Section 4 of the Act clearly stipulates that gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease.It is provided further that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Some of our members have opined that the gratuity shall not be payable if there is no mentioned of the same in their CTC, but I am of the strong opinion that since it is a STATUTORY DUES, the employer is duty-bound to pay the gratuity to the eligible employees irrespective of the fact that (i) whether the component of gratuity has been included in the CTC or not and (ii) a notice in Form A to the controlling authority of the area has been submitted or not.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Dear All ,
Thank you for your valuable insight.now from where i see the case,
The company is liable to pay gratuity as per payment of gratuity act 1972.
and No deduction shall be made on part of salary of employee when it comes to gratuity however for PF emoluments in lump sum of 12% are deducted and similar 12 % is contributed by the employer.
However there are few requirements on the part of employee for claiming of gratuity:
1 He should have worked for not less than five years for the employer.
The Gratuity is Calculated as follows : ( Basic + DA ) /26 X 15 X No of Years Worked.
Also as For Coverage of the ACT to your company ,
Yes , if 10 or More Persons have been , or were employed in any day of the preceding 12 months then yes , gratuity is applicable.
As far including current amendments :
Gratuity upto INR 10,00,000 is tax free and The maximum Gratuity Payable should not exceed a total of 20 Months Wages.
Hope your Query is cleared for some extent.
And please other members if i am wrong anywhere please do correct me....i am always open to learning
However for people with doubt in any thing related HR fraternity can contact me on my linked profile
Arakanshu Singh - India | LinkedIn or mail :akkyinmba@gmail.com.
From Singapore, Singapore
Thank you for your valuable insight.now from where i see the case,
The company is liable to pay gratuity as per payment of gratuity act 1972.
and No deduction shall be made on part of salary of employee when it comes to gratuity however for PF emoluments in lump sum of 12% are deducted and similar 12 % is contributed by the employer.
However there are few requirements on the part of employee for claiming of gratuity:
1 He should have worked for not less than five years for the employer.
The Gratuity is Calculated as follows : ( Basic + DA ) /26 X 15 X No of Years Worked.
Also as For Coverage of the ACT to your company ,
Yes , if 10 or More Persons have been , or were employed in any day of the preceding 12 months then yes , gratuity is applicable.
As far including current amendments :
Gratuity upto INR 10,00,000 is tax free and The maximum Gratuity Payable should not exceed a total of 20 Months Wages.
Hope your Query is cleared for some extent.
And please other members if i am wrong anywhere please do correct me....i am always open to learning
However for people with doubt in any thing related HR fraternity can contact me on my linked profile
Arakanshu Singh - India | LinkedIn or mail :akkyinmba@gmail.com.
From Singapore, Singapore
Hi Your employer is liable to pay gratuity. The employer should have planned and deposited/invested this amount as gratuity fund with any nationalized bank/LIC /bondetc. thanks Gangadharan
From India, Mumbai
From India, Mumbai
HI All
I have joined an IT company as Trainee and worked for initial 6 months as trainee.I Joined co on 26th Aug 2008 so 5 years on 26th Aug 2013,
So does that 6 month period counted for completion of 5 years to be applicable for gratuity? or I have to complete 5 years extra than those 6 months of training period?
Thanks
From India, Chandigarh
I have joined an IT company as Trainee and worked for initial 6 months as trainee.I Joined co on 26th Aug 2008 so 5 years on 26th Aug 2013,
So does that 6 month period counted for completion of 5 years to be applicable for gratuity? or I have to complete 5 years extra than those 6 months of training period?
Thanks
From India, Chandigarh
Dear Ankit,
You need to check the terms & conditions of your appiointment letter.Please also check the following points-
(i) whether the TRAINING period was an intregal part of your present position ?
(ii) whether there was any break between your training period & regular position/post ?
If your training period was an intregal part of your service and you continued in the regular service thereafter without any break, then the period of six months shall be counted for the purpose of calculation pf payment gratuity payable to you but if there was any break between your training period and regular service, then the period of six months shall not be counted.
BS Kalsi
Member since Aug 2011
From India, Mumbai
You need to check the terms & conditions of your appiointment letter.Please also check the following points-
(i) whether the TRAINING period was an intregal part of your present position ?
(ii) whether there was any break between your training period & regular position/post ?
If your training period was an intregal part of your service and you continued in the regular service thereafter without any break, then the period of six months shall be counted for the purpose of calculation pf payment gratuity payable to you but if there was any break between your training period and regular service, then the period of six months shall not be counted.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc