sandeep 25 April 2017

Gratuity if not part of ctc

I am working in a pvt ltd company for the past 4 years. Gratuity is not shown as part of my CTC. But my company creates a provision in balance sheet for all those whose service crosses 5 years of service. Am I elegible for claiming gratuity after years? (Since there is no gratuity component in my CTC)

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Kumar Doab (FIN) 25 April 2017

Even if Gratuity is made part of CTC as per provisions of Payment of Gratuity Act, 1972:...........If the establishment works for 6days/week or less than 6days/week: then you should be eligible after completion of 4Y240D/4Y190D.

The company’s enteries in balance sheet are not your subject matter.

Kumar Doab (FIN) 25 April 2017

The company can offer better terms of gratuity and pay it even if employee has worked for less then period as mentioned above.

Refer: Payment of Gratuity Act, 1972:4(5).

There are publication suggesting some comapne shave been offering payment of Gartuity after 2 years of service.

If the company does not have any such policy or has not offerred better terms of Gratuity to you then as on date you are not eligible, since as per your post you have worked for 4Y only.