Anson Samuel 26 June 2025
kavksatyanarayana (subregistrar/supdt.(retired)) 26 June 2025
A CTC(cost to company) employee is eligible for gratuity if they complete at least 5 years of service. You are eligible to get gratuity as you have completed 5.5 years of service. As per the offer letter, the company shall pay the salary up to the 6th. They paid up to the 31st, so you lose 6 days' salary. You ask for it.
T. Kalaiselvan, Advocate (Advocate) 26 June 2025
A company with only 7 employees is generally not liable to pay gratuity under the Payment of Gratuity Act, 1972.
The Act applies to establishments that employ 10 or more persons.
Once a company falls under the purview of the Act by employing 10 or more employees, it remains covered even if the employee count drops below 10.
Even if gratuity is included in the Cost to Company (CTC), it doesn't change the legal obligation.
While gratuity is often included in the CTC, it doesn't change the fact that a company with fewer than 10 employees is not legally bound to pay it.