Hi All, Do any of you have the Gratuity act document with you? I would like to understand the interest payable calculation if gratuity had not been paid on completion of 5 years.

Thanks for asking Albus

Hi, We have offices in Bangalore and Chennai

@Shyamala Thangadurai you can refer to the below link for details on the same https://vakilsearch.com/blog/rate-of-interest-for-delayed-payment-of-gratuity/

In an ideal situation, gratuity becomes payable when employee leaves the job (voluntary or involuntary termination) in case he/she is eligible as per the eligibility. Same has to be paid with in 30 days from the last working date of an employee else interest should be payable as shown in the article. If in case employee is continuing with an employment post 5 years as well then company is not liable to pay any gratuity amount to any employee. Gratuity becomes payable at the time of termination of employment.

@Srikant Pandiya what is your take on cases where gratuity is included as part of CTC and then a termination happens or the employee leaves ?

Gratuity is inckuded in ctc to show that if he/she dies or faces unexpected death. Their gratuity will be paid as per law.

@Sai Venkata Vinay Chittuluru in case of death any which ways the gratuity is paid out for the term of service, what if the person is terminated or Layoff where gratuity is shown as part of CTC and deducted?

Definition of CTC is different for each company. Companies include variable pay as part of CTC but employee is not going to get full amount of variable pay and gets the amount as per his performance which means the employee is still losing the money. Companies include the insurance they spend, maximium limitataions in the ctc annexure. Some dont include all the details. Also when gratuity is shown in CTC as part of FnF settlrmt companies have to pay to thr employee but no legality towards this untill the company has a policy