Gratuity And Pension Deduction

Good Evening Seniors,
Can company/ manufacturing unit make deduction for GRATUITY / PENSION FUND from salary. if it is deducted from salary than which department to deposit by empoyer. Is this the legal, where i have the knowledge its not the CTC part but there are some companies who already made deductions for Pension and Gratuity also.......
When i asked to management for this, they told me it's the right way, and we can deduct.
Hence i want to know what is the right?
Please help me out for this. Your early action in this regard will be highly appreciable.
Thanks & Regards

Gratuity is an amount that the employer should pay when an employee leaves his establishment after having rendered a service of at least 5 years. It is payable irrespective of service if the employee dies while in service. It is a payment by the employer and not by the employee and therefore, the practice of deducting amounts from the salary of employee is illegal.
An establishment covered by Employees Provident Fund will automatically have Pension Fund contribution by the employer and that contribution is also a contribution by the employer and he cannot recover it from the employee by way of deduction from the salary.
Madhu.T.K

Dear Madam/Sir,
A simple one worded answer to your questions is a big "NO"...it is illegal,immoral and open theft on the part of employer.
The answer by Sr Madhu T.K is absolute.
Warm Regards,
A

Hello Sir,
Please tell if an employee dies after 4 years of service than how his gratuity will be calculated, what formula will be applied. Please explain with an example.
Regards,
Sarita

Very simple, the same formula, that is Gratuity Qualifying salary (normally Basic +DA) divided by 26 (days) multiplied by 15 (days) further multiplied by 4 (years of service)
In case the gratuity fund is linked to LIC's gratuity scheme, then the LIC will pay gratuity based on a calculation projected to a service till his superannuation date.
Madhu.T.K

Shri Madhu T.K.,
Thanks for your points/clarifcation reg. deduction of Gratuity & Pension contributions from the employees. Such practice was not heard earlier whereas nowadays, some of the Heads of Organisation; (may not be HR person) inorder to attract the candidate promises Gratuity even before 5 yrs. commits them, & then deduct from salary ignoring the Gratuity Law. Same is the case with Pension.
Further, your clarification that the dependent of the deceased employee will get extra benefit if
gratuity fund is linked to LIC's gratuity scheme, then the LIC will pay gratuity based on a calculation projected to a service till his Superannuation date is an important benefit ; and it will be useful infn. for the HR persons.
Thanks for the contribution Sir,
c.neyimkhan 21.11.14.

In case employee die during the service period the gratuity will calculation Basic Salary/26*15*58- current age when employee die

Hello Friends
I was working in management institute from last 8 years. They are running three courses. Viz Engineering,MBA and B.pharm. they are giving gratuity only to engineering employees but the problem is if employee of MBA or pharma department resign or retire after 5 yrs of his/her job then trust not giving them gratuity.
I am permanent emoloyee of that instiyute
So in this case what step I can take?

Mr.Tejpal,
You should be check your appointment letter if your institute mentioned the gratuity applicable then you send the letter to your institute for gratuity claim & send to local authority.
Awdesh Goyal
8527902151