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Chandan Singh (Professional)     26 April 2018

Ex gratia-gratuity wheather eligible if it is mention in ctc

Hello Senior,

Need your opinion on below issue

A).  Wheather an employee is eligible for Ex Gratia if he is worked for less than 5yrs and gratuity is mention in his CTC at monthly 8.33% of Basic but not shown is salary slip as deduction, here in my case i worked for a reputed organization for last 2.5yrs and Gratuity is mention in my CTC. as a normal law of gratuity , it is payable only when you compelete 5yrs of contionius services but if gratuity is mention is CTC , can an employee is eligible to claim.

b. if it is paybale before 5yrs of services then can you provide me any Case Law or any rule or law which is support above query.


 3 Replies

CS Sandip (ILO)     26 April 2018

The gratuity is paid after completion of 5 years of service only as per the Act. 

Even you left the job before completion of 5 years and your ctc includes amount of gratuity, then you have to forgo it because you had agreed it at the time of joining/appointment. 

dinesh sharma (advocate)     26 April 2018

any agreement can not superseed the Law.....gratutiy is not ex gratia it is your reward you serve the you can approach the controlling authority under gratuity act 1972 by filing a complaint before him as your employer mention in your CTC break up as gratuity.

Kumar Doab (FIN)     22 June 2018

The establishment can provide better terms of gratuity as provided for in the Act. Thus establishment can pay Gratuity even for 2.5Y of service..

There are publications suggesting that establishments advertised for Gratuity for even say; 2Y of service to attract employees…


The % mentioned by you is probably for Bonus ( Min.) as per Payment of Bonus Act.

For Ex- Gracia; refer to company’s policy and relate..

There are threads at LCI by employees that succeeded with their own skills when Gartuity was mentioned in CTC..






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