Education and Career Forum

Can anyone tell me whether do we consider first year of service in becoming eligible for Gratuity or after first year of service it is five years? I am working in TCS. Can anybody please explain me the calculation criteria and method for Gratuity?

According to new gratuity policy , the law limits the maximum basic pay to 50% of CTC , which will increase the gratuity bonus that must be provided to employees.

The gratuity amount will be determined on a large salary base that includes basic pay and allowance.

An employee is eligible to receive gratuity amount after completing 5 years of continuous service at one organization.

Gratuity is a benefit being given by so many Companies to Employees wherein every month certain amount will be deducted towards Gratuity from Employee salary.

Though it will be deducted on monthly basis, not all the employees are eligible for Gratuity amount at the time of leaving the Organization.

In most of the Companies, the criteria is Employee has to complete 5 years of service with the Organization. In some other Companies it is 4 years.

Some Companies will consider four and half years of service as 5 year service and award the Gratuity. Some other Companies will consider exactly 5 years of service.

Even if you fall 1 day short of 5 years of service also, you will not be awarded Gratuity.

If you are close to completion of 5 years of service in TCS, I would suggest you to continue to work until 5 years completion.

Please note that the notice period you serve in TCS which is 3 months will also be considered while calculating 5 year duration.