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Gratuity.

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employeerightsindia

Employees are eligible for gratuity payments after 5 years of continuous service with a company. Gratuity is calculated based on an employee's last drawn basic salary plus dearness allowance, multiplied by 15/26 and the number of years of continuous service completed. Gratuity of up to Rs. 3.5 lacs is tax exempt. Companies must include gratuity in their HR policies and employment contracts as payment of gratuity is a statutory requirement.

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Gratuity is payable to employees who have completed 5 years of continuous service.Gratuity is payable from Date of joining i.e. date of probation (training, contract, retainership basis are not considered.) This should be mentioned in HR Policy of the company and appointment letter issued to employee.Gatuity is calculated as = Last drawn (Basic+DA) x 15/26 x No. of year of continus. completed service It can be a component in CTC.If employee leaves before 5 years Gratuity is not payable.Gratuity upto Rs.3.50 lacs is not taxable.LIC is having a good Group Gratuity Scheme.Payment of Gratuity is a statutory requirement.See attachment.ThanksRegardsPari.

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Gratuity.

  • 1. Gratuity is payable to employees who have completed 5 years of continuous service.Gratuity is payable from Date of joining i.e. date of probation (training, contract, retainership basis are not considered.) This should be mentioned in HR Policy of the company and appointment letter issued to employee.Gatuity is calculated as = Last drawn (Basic+DA) x 15/26 x No. of year of continus. completed service It can be a component in CTC.If employee leaves before 5 years Gratuity is not payable.Gratuity upto Rs.3.50 lacs is not taxable.LIC is having a good Group Gratuity Scheme.Payment of Gratuity is a statutory requirement.See attachment.ThanksRegardsPari.