Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Gratuity calculations

137 views

Save Share

Abhishek Selvam O

374 Points Posted on 14 September 2020

Company started on 2015 april 5 years have gone now gratuity provision has been created for those employees who has been in the service for 5 years should we pay gratuity amount now itself or when they leave

Replies (2)

Quick Summary

This discussion clarifies the timing of gratuity payments for employees. Gratuity is not paid out simply upon completing a certain number of years of service, such as five years. Instead, the payment is only made when an employee officially leaves the company. Until that point, it is treated as a provision within the company's accounts.