Dear Seniors,

The payment of Gratuity will be paid on a yearly basis or every year after an employee has reached the eligibility period of 5 years. Is it possible? Please let me know the different modes of payment for Gratuity.

Thanks in advance.

Regards,
Rajni

From India, Karur
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Employee will be eligible for gratuity only when he or she completes 5 years of work sucessfully under the same organisation.
From India, Bangalore
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Dear Sir,

An employee will be entitled to gratuity under the Payment of Gratuity Act only if he has completed five years of continuous service and his services with the employer come to an end on account of resignation, retirement on attaining the age of superannuation, or death. The employer is liable to pay the gratuity amount only when the employee leaves the services of the company, not during every year.

Thank you.

From India, Madras
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Gratuity is one of the benefits for an employee, and it is paid only when he serves the organization continuously for 5 years without any breaks in service. The payment of gratuity is made only when he/she is separated from the company, not every year after completing the five years of service.
From India, Bangalore
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Hi,

I just want to know if a company terminates an employee for any reason, definitely not for misconduct, when the employee has completed their 5th year of service with the company.

1) Is the employee entitled to receive gratuity in such a case?
2) If the gratuity amount is included in CTC, should the gratuity amount deducted every year be added to the full and final settlement (F&F) or not?

Please share your views on the same.

From India, Pune
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Dear Sunil Please clarify the reasons for the termination. This is necessary to give a view. Further are you talking about an employee who is covered by the Payment of Gratuity Act? please clarify
From India, Madras
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Hi,

It's basically retrenchment. Basically, the company has included the Gratuity component in their CTC calculation. So every year when they revise the salary, it gets calculated, and that amount is considered in CTC. Employees are covered under the Gratuity Act. So whenever a new employee joins the company, the Gratuity amount is a part of CTC.

From India, Pune
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Dear Sir, If Gratuity is not deducted from CTC then an employee liable for Gratuity after complition of 5 year services or not?
From India, Surat
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Dear Sir, If gratuity not deducted in CTC Is that employee liable for gratuity after completion of 5 year service. If possible give some document for that. Ramesh Patel
From India, Surat
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dear Sir, If gratuity not deducted in CTC Is that employee liable for gratuity after completion of 5 year service.If possible give some document for that.
From India, Surat
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Dear Mr.Harikrishnan, If an employee has completed 4+yrs is he eligible for gratuity,under the continuous service clause of 240 days.
From India, Madras
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Hi Sir,

Nowhere is it mentioned about the amount to be paid as gratuity to an employee by the employer. Can you tell me what amount one receives as gratuity? If it is at the discretion of the employer, then how is the gratuity amount calculated?

Thank you.

From United States
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Dear Mr. Ramesh Patel,

The liability to pay gratuity to an employee to whom the Payment of Gratuity (PG) Act is applicable by an employer/establishment/company to which the PG Act is applicable is a legal liability. Whether gratuity is a part of the Cost to Company (CTC) or not does not matter. The legal liability under the PG Act to pay gratuity is absolute and is not dependent on the components of the CTC.

From India, Madras
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Hello,

I am working for Diya Systems Pvt Ltd in Mangalore, which is a development center for GlowTouch Technologies. I am also working for Endurance International, the second-largest web hosting company. I have completed 5.5 years of service. I would like to know if all companies are covered under the gratuity act. Our Account Manager says that our company is not eligible. Can you please explain?

From India, Mangaluru
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If the reason is retrenchment and if the employee is covered under payment of Gratuity Act, then the employee is entitled to Gratuity after successful completion of 5 years in the same company.
From India, Mumbai
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Dear Mr. Fabianfigredo,

If the employee is covered by the provisions of the Payment of Gratuity Act and if the Payment of Gratuity Act is applicable to the establishment in which the employee is employed, then he is entitled to get, and the employer is liable to pay gratuity when the services of the employee are terminated due to (i) his superannuation on attaining the age of retirement, (ii) his resignation, or (iii) his death or disablement due to accident or disease. However, the employee should have rendered continuous service for five years. The condition regarding five years of continuous service is not necessary in the case of the termination of the services of the employee due to death or disablement due to accident or disease. The meaning of continuous service is defined in the Act itself. If the employee had worked for 240 days during the 12 calendar months, he is deemed to have rendered continuous service in that year. Therefore, in the case of a worker who had worked for four years and had completed 240 days in the fifth year of service, he may claim gratuity on the grounds that he had rendered five years of continuous service.

Thank you.

From India, Madras
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I worked with a limited firm from May 1998 to March 1, 2011, and resigned from the firm thereafter. I was entitled to PF from 2000 until March 2011. My question is, am I eligible for Gratuity? Because when I inquired with the management, they said that there is no provision for paying gratuity to me. Kindly let me know, as I worked almost 12 years without any break with the said firm and now left the organization. Can anybody guide me?
From India, Delhi
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Dear Sir,

Is a part-time working employee in a company eligible for gratuity once he has completed 7 years of service? His PF is also deducted from the monthly salary. Is he eligible for the gratuity, or does working part-time disqualify him from receiving gratuity?

Lal

From India, Kochi
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Is Gratuity eligible for a part-time employee if he has worked in an organisation for more than 7 years in continuity ?
From India, Kochi
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