24th May 2010 Corporate HR

Payment of Gratuity

HCL Technologies Ltd. 2010. All rights reserved.

No part of the document may be copied, reproduced, stored in any retrieval system, or
transmitted in any form or by any means, either electronically, mechanically, or
otherwise without prior written permission.

Ver 2.0 HCL Technologies Ltd.-Confidential 1

24th May 2010 Corporate HR

TABLE OF CONTENTS

Page
Topic Name
Number

Objective 4

Applicability 4

Policy Details 4

Ver 2.0 HCL Technologies Ltd.-Confidential 2

 24th May 2010 Corporate HR

REVISION HISTORY

Version Reviewed &

From To Description Author
No. Approved By

1.0 1st December 2008 23rd May 2009 First copy Atul Jain Nitin Pande

2.0 24th May 2010 Revision C&B Team C&B Head

Ver 2.0 HCL Technologies Ltd.-Confidential 3

24th May 2010 Corporate HR

Objective
To ensure all employees enjoy long term tax benefits as well as monetary security.

Applicability
The policy is applicable to all permanent employees of HCL Technologies ltd on India
payrolls.

Policy Details
 All employees are entitled to be paid gratuity after they have rendered continuous
service for not less than five years. The gratuity amount is receivable by an
employee only when he/she leaves the service.
 For entitlement of gratuity, there is no salary limit. All employees getting salary
without any upper limit, are entitled to be paid gratuity, subject to the condition that
the maximum amount of gratuity will be INR 10 lakh
 As per statutory requirements, it is employer’s liability to pay 15 days Basic salary
(15/26 of a monthly Basic) for every completed year of service on India payroll to
each of his employees on their exit.
 Gratuity amount paid to the employee is exempted from tax for up to INR 10 lakh.
Any amount paid above this is subject to tax.
 The employee will be exempted from tax only when he gives a declaration that he /
she has not received gratuity amount above the maximum permissible amount in
any previous employment(s)
 In case of death of the employee, the family/legal heirs of the employee are eligible
to be paid the gratuity amount by the employer.
 In case of death or disablement completion of continuous service of five years is not
necessary.
 In case an employee moves to onsite for a period of time on long term basis, at the
time of separation the period at which the employee was on onsite payrolls will be
deducted from the total tenure for the payment of gratuity. However, the duration
will be counted for the purpose of eligibility period.

Ver 2.0 HCL Technologies Ltd.-Confidential 4