Gratuity

	Message From: ekta	Total Posts: 1	Join Date: 02/12/2009
Rank: Beginner	Post Date: 02/12/2009 10:57:55	Points: 5	Location: India

I am working in a IT company from this year my company is introducing Gratuity as a part of CTC .They are cutting4.8% of Basic as a part of Gratuity every month from our CTC.
They told us that if any one resign before compeleting five years of service they will not get a single penny.is it right?

	Message From: Malini Raghunath	Total Posts: 17	Join Date: 02/12/2009
Rank: Executive	Post Date: 03/12/2009 04:14:37	Points: 85	Location: India

Dear Ekta,

Yes they are right, if you have not completed 5 years of service you will not be eligible for Gratuity

Gratuity shall be payable to an “employee” on the termination of his employment after he has rendered continuous service for not less than five years.
a. On his superannuation.
b. On his retirement or resignation.
c. On his death or disablement due to accident or disease.
NOTE: However, the condition of five years of continuous service is not necessary if service is terminated due to death or disablement.

Hope above points will clear your doubt.

REgards..Malini