Are you being deprived of your Right to Gratuity?

Are you being deprived of your Right to Gratuity?

Hii Connections

If your answer to above question is yes, then let me make you understand your right with a narrative 🧐.

(Niraj comes home and meet his sister Neha after resigning from his job)

Niraj: Hii Neha didi!

Neha(CA): Hello Niraj, so you are free now after a long time? So why not we plan our siblings trip ? We all will have fun together after a long time!

Niraj: Ohh! What to say? I hardly have money to support my expenses for this month as I have only my last month salary in my hand.

Neha: Why, haven't you got your gratuity amount from your employer?

Niraj: Noo... That wasn't covered in my offer letter.

Neha: Broo... Gratuity is your "LEGAL RIGHT"!

Niraj: What Does it mean?

Neha: Gratuity is a sum of money that employer pay their employees as a sign of gratitude for the service they have performed over years. Gratuity is payable under the Payment of gratuity Act, 1972.

Niraj: Is it applicable to my employer?

Neha: If a company be it public or private sector has 10 or more than 10 employees working in their organization, must pay gratuity to its employees.

Niraj: What is its applicability for me and if applicable what will be amount?

Neha: Gratuity is paid to employees who have completed five or more years of service on their respective companies. The basis for the calculation is last drawn salary and the number of years of service provided by the employee.

Niraj : But I am not government servant.

Neha: Here we are talking about gratuity for non-government employee.

Niraj : That's great. But what if the company doesn’t pay me?

Neha : As the payment is mandated under law every establishment must pay the same. But if they default you can always raise grievance with the Labour Department.

If you want to know more about other eligibility criteria you can check out the Act at The Payment of Gratuity Act, 1972.

Niraj : Thank You Siso.... Lets party then !!!



#gratuity #finance #job #CharteredAccountant #employees #incentives #money #right

CA Kailash Chandak

Chartered Accountant| May 2024 | Ex- Treasurer of Wicasa | Bcom IGNOU University

6mo

Informative..💯👍

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