Gratuity is a grtitude of an employer to employee for serving minmum of 5years as per applicable act.There is no such deduction will happen for gratuity like other statutory benifits.
As per the act its is mandatory to serve minimum five years.
From India, Bangalore
As per the act its is mandatory to serve minimum five years.
From India, Bangalore
Dear Nidhi
if the employer show the graduity in CTC & deduct the graduity from salary in that condition any body leave the service before 5 years in that case he/she demand the graduity amount.
regards
anil sharma
HR Executive
From India, New Delhi
if the employer show the graduity in CTC & deduct the graduity from salary in that condition any body leave the service before 5 years in that case he/she demand the graduity amount.
regards
anil sharma
HR Executive
From India, New Delhi
31- Unlike PF or ESI there is no deduction or contribution applicable in case of Gratuity.
- There is no harm, if Gratuity is included in CTC. You can specifically mention in the CTC Sheet that, 'Gratuity will be payable only after completion of 5 years service, as per the provisions of Payment of Gratuity Act.'
From India, Pune
Dear Nidhi
it is necessary to give the gratuity amount to the person who has completed his 5year continuous service.
The calculation is done as per below formula.
BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
Gratuity is to be paid to any employee only he provides service for a minimum time of five years at a stretch with his employer in company. The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.
Vikas
From India, Delhi
it is necessary to give the gratuity amount to the person who has completed his 5year continuous service.
The calculation is done as per below formula.
BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
Gratuity is to be paid to any employee only he provides service for a minimum time of five years at a stretch with his employer in company. The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.
Vikas
From India, Delhi
Dear Nidhi
Kindly note the points given below which help you to understand how gratuity is paid in an Organization with reply to your points
First note that gratuity is liability to the Organization . Hence the Finance and accounts department will calculate the actual liabiity based on several factors ( employee number of years worked /Salary growth / attrition etc) for the year . Based on the same they will make monthly provision . All this work are done by accounts and finance people based on HR inputs which we provide them twice in a year in our Organization
Now coming to your points
Please note that gratuity payment is mandatory because it is a part of salary earned by an employee . The acutual service should be 4 years 10 month 18days as Madras High Court judgement 1998 LLR 1072 WP No-2135 of 1987 decided on 12.06.96 ( Mettur Beardsell Ltd V/s Regional Labour Comissioner Madras)
The formula is Basic (DA or VDA ) X 15 number of years worked / 26
1) It will be calculated on the last salary drawn?
>It will be calculated based on last basic +DA+ VDA
2) If an employee resigns after 12 years then it will be calculated accordingly 15 days per year ?
>Exactly Gratuity is 15 days per year
3) If employer don't give gratuity then will it create a problem ? Its records to be maintained.
It is mandatory and need to be paid by the employer when the employee resigns / retires / death
Regards
Atul
Kindly note the points given below which help you to understand how gratuity is paid in an Organization with reply to your points
First note that gratuity is liability to the Organization . Hence the Finance and accounts department will calculate the actual liabiity based on several factors ( employee number of years worked /Salary growth / attrition etc) for the year . Based on the same they will make monthly provision . All this work are done by accounts and finance people based on HR inputs which we provide them twice in a year in our Organization
Now coming to your points
Please note that gratuity payment is mandatory because it is a part of salary earned by an employee . The acutual service should be 4 years 10 month 18days as Madras High Court judgement 1998 LLR 1072 WP No-2135 of 1987 decided on 12.06.96 ( Mettur Beardsell Ltd V/s Regional Labour Comissioner Madras)
The formula is Basic (DA or VDA ) X 15 number of years worked / 26
1) It will be calculated on the last salary drawn?
>It will be calculated based on last basic +DA+ VDA
2) If an employee resigns after 12 years then it will be calculated accordingly 15 days per year ?
>Exactly Gratuity is 15 days per year
3) If employer don't give gratuity then will it create a problem ? Its records to be maintained.
It is mandatory and need to be paid by the employer when the employee resigns / retires / death
Regards
Atul
Dear nidhi ,
pl. See the defination of wages , it is only basic + da .
As per act u have to maintain nomination forms of all employees in prescribed format .
Also u have to maintain declaration form that who is responsible for gratuity payment .
All forms are given in act.
If u have any problem contactme on 9011795899
regards,
mangesh
From India, Pune
pl. See the defination of wages , it is only basic + da .
As per act u have to maintain nomination forms of all employees in prescribed format .
Also u have to maintain declaration form that who is responsible for gratuity payment .
All forms are given in act.
If u have any problem contactme on 9011795899
regards,
mangesh
From India, Pune
Dear Nidhi,
Gratuity will have to be paid to only those employees, who have continually served the company for more than 4 years and 8 months. If this is shown in the CTC structure, the employer must mention in writing that Gratuity is payable as per Payment of Gratuity Act, 1972.
From India, Calcutta
Gratuity will have to be paid to only those employees, who have continually served the company for more than 4 years and 8 months. If this is shown in the CTC structure, the employer must mention in writing that Gratuity is payable as per Payment of Gratuity Act, 1972.
From India, Calcutta
[QUOTE=Subha Bandyopadhyay;1176906]Dear Nidhi,
Gratuity will have to be paid to only those employees, who have continually served the company for more than 4 years and 8 months. If this is shown in the CTC structure, the employer must mention in writing that Gratuity is payable as per Payment of Gratuity Act, 1972. Employees may ask for anything, but the HR department will have to handle each and every case carefully.
From India, Calcutta
Gratuity will have to be paid to only those employees, who have continually served the company for more than 4 years and 8 months. If this is shown in the CTC structure, the employer must mention in writing that Gratuity is payable as per Payment of Gratuity Act, 1972. Employees may ask for anything, but the HR department will have to handle each and every case carefully.
From India, Calcutta
Dear all,
Sunny Mahajan mentioned that one can go to labour court, if the gratuity is not paid. Please note all the employees do not come under the caegory of "labour". This is based on the basis of gross salary earned. And, going by the salary at present in the IT and other sector, very few woould fall under the category. The labour office will entertain the complaint of the employees who are covered under the defination of "labour" only. For all others, the remedy lies with the civil court.
From India, Bhubaneswar
Sunny Mahajan mentioned that one can go to labour court, if the gratuity is not paid. Please note all the employees do not come under the caegory of "labour". This is based on the basis of gross salary earned. And, going by the salary at present in the IT and other sector, very few woould fall under the category. The labour office will entertain the complaint of the employees who are covered under the defination of "labour" only. For all others, the remedy lies with the civil court.
From India, Bhubaneswar
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc