Related Gratuity
5 months ago
I have been working in an MNC company since 2011. Suddenly they stopped deducting my PF due to the changes in company name. So I want to confirm that will this effect my gratuity.
A.Dear Client
Are you saying that the same old company changed its name but the legal entity remained the same? If that be the case then you do have continuity of service and you shall be eligible for gratuity
Are you saying that the same old company changed its name but the legal entity remained the same? If that be the case then you do have continuity of service and you shall be eligible for gratuity
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A.Dear client
Provident Fund (PF) is a retirement savings scheme, and the discontinuation of PF deductions may affect your PF account but does not necessarily impact gratuity. Gratuity is typically payable to an employee who has completed a continuous service of at least five years with an employer. However, there are certain conditions under which gratuity may be payable even if the employee has not completed five years of service. Changes in the company name, if the legal entity remains the same, should not impact the calculation or payment of gratuity. However, if there have been changes in the ownership or structure of the company, it's important to ensure that gratuity calculations are carried out appropriately. To clarify the specific situation in your case, it is advisable to reach out to your HR or finance department. They should be able to provide information on the status of your gratuity entitlement and whether any changes in the company name have affected the gratuity process.
Provident Fund (PF) is a retirement savings scheme, and the discontinuation of PF deductions may affect your PF account but does not necessarily impact gratuity. Gratuity is typically payable to an employee who has completed a continuous service of at least five years with an employer. However, there are certain conditions under which gratuity may be payable even if the employee has not completed five years of service. Changes in the company name, if the legal entity remains the same, should not impact the calculation or payment of gratuity. However, if there have been changes in the ownership or structure of the company, it's important to ensure that gratuity calculations are carried out appropriately. To clarify the specific situation in your case, it is advisable to reach out to your HR or finance department. They should be able to provide information on the status of your gratuity entitlement and whether any changes in the company name have affected the gratuity process.
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A.Dear Client,
Although both EPF and Gratuity come under the purview of social security laws, both are governed by different Acts and Rules, While PF is governed by the Employee Provident Fund and Misc. Provision Act, 1c952, Gratuity is governed by the Payment of Gratuity Act, 1972 and is not contradictory to each other and does not affect each other in any way. An establishment has to compulsorily register under the PF Act if it employs more than 20 employees. PF is mandatory for all employees whose monthly salary is less than Rs 15,000. The Payment of Gratuity Act, 1972 is applicable to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops, or other establishments with 10 or more employees. Gratuity is fully paid by the employer to an employee who has completed at least five years of continuous service in the same establishment. For sudden stoppage of deduction of PF contribution from a member employee, you can file a complaint with the EPFO against the employer for non-deposit of PF contributions through email:[email protected]. This can trigger an inquiry by the retirement fund regulatory body. You can also approach the chief vigilance officer appointed by the labor ministry.
Although both EPF and Gratuity come under the purview of social security laws, both are governed by different Acts and Rules, While PF is governed by the Employee Provident Fund and Misc. Provision Act, 1c952, Gratuity is governed by the Payment of Gratuity Act, 1972 and is not contradictory to each other and does not affect each other in any way. An establishment has to compulsorily register under the PF Act if it employs more than 20 employees. PF is mandatory for all employees whose monthly salary is less than Rs 15,000. The Payment of Gratuity Act, 1972 is applicable to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops, or other establishments with 10 or more employees. Gratuity is fully paid by the employer to an employee who has completed at least five years of continuous service in the same establishment. For sudden stoppage of deduction of PF contribution from a member employee, you can file a complaint with the EPFO against the employer for non-deposit of PF contributions through email:[email protected]. This can trigger an inquiry by the retirement fund regulatory body. You can also approach the chief vigilance officer appointed by the labor ministry.
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