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Gratuity

This query is : Resolved 

I understand that gratuity is 4.81% of the basic pay.
But some firms include it in the ctc, while many do not.

Suppose it is included in the ctc, and say company is witholding 3000 Rs. /month from my take home, then if I leave after 5 years, I will get the entire accumulated money, I understand that

But Suppose gratuity is included in the ctc, and say company is witholding 3000 Rs. /month from my take home, then if I leave after 3 years i.e before 5 years, in this circumstance, can I be eligible to claim the entire accumulated Gratuity which has accumulated for 3 years as ex-gratia.





Not eligible to claim in case of less than 5 years service. For more than 5 years only gratuity can be paid as per gratuity act.

so basically companies which are deducting gratuity out of the CTC (i.e by including it within CTC) are indirectly creating a BOND type of situation. A bond agreement which says "every month I will deduce xxxx from your take home, and if you leave before 5 years, you lose all the accumulated money"..

but what about EX-GRATIA payment...if company doesnt withold gratuity from CTC and employee leaves within 5years, ok no payment nothing lost, nothing gained

but I read somewhere that in cases where "company is deducting money from CTC" to add to the "gratuity pot".........such companies must pay the accumulated money out when the employee quits before 5 years. is this true

It's not true. Gratuity will be taken for the purpose of CTC but payable only when 5 years service is completed.

So that means this is like an indirect tactic of companies to withdold gratuity money, thereby indirectly telling employees, ïf you leave before 5 years, you are losing all that money

No, that is not correct. That's the practice followed by all the companies. Unless 5 years of service is not completed no gratuity will be paid.


Bajaj Finserv

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