Hi, Can anyone explain the gratuity eligible for employees under the factories act. regards A.Paulraj
From India, New Delhi
5From India, New Delhi
Hi Paul An employee who has completed 4 years and 8 months in the fifth year are eligible for grautity under the Act. It is not that 5 years completion. Any guys opinion on this Sushil
From India, Mumbai
From India, Mumbai
Friends
Please clear your fundamentals
Gratuity is paid as per the Gratuity Act - and not as per the Factories Act.
Employee is eligible if
1. Worked for 5 or more years - uniterrupted serivce (no breaks) with, each year completed 240 days
2. Fifth year if not completed then should have woeked for 240 days in the fifth year
3. Authorised leave considered for 240 days
4. Apprentice not eligible for gratuity
for deatils check on the link below:
http://vakilno1.com <link updated to site home>
Regards
Ketan
From India, Mumbai
Please clear your fundamentals
Gratuity is paid as per the Gratuity Act - and not as per the Factories Act.
Employee is eligible if
1. Worked for 5 or more years - uniterrupted serivce (no breaks) with, each year completed 240 days
2. Fifth year if not completed then should have woeked for 240 days in the fifth year
3. Authorised leave considered for 240 days
4. Apprentice not eligible for gratuity
for deatils check on the link below:
http://vakilno1.com <link updated to site home>
Regards
Ketan
From India, Mumbai
Dear Ketan and to ALL of my friends,
For calculating of 240 days not only authorised leave considered but there are about 15 to 20 points which are considered for calculating 240 days like - sickness leave, lay off, strike with prior information, accident leave etc.
Please see The gratuity Act for detail.
Thanks
rrtpan
For calculating of 240 days not only authorised leave considered but there are about 15 to 20 points which are considered for calculating 240 days like - sickness leave, lay off, strike with prior information, accident leave etc.
Please see The gratuity Act for detail.
Thanks
rrtpan
I had joined my company on 12th Jul’02 and worked till 31-Oct-06. Just wanted to know about my entitlement for Gratuity. Regards, Manish
From India, Pune
From India, Pune
Hi everybody,
Please clear my doubt. If an employee completed his service for 6 years and 5 months then he resigned. When we make his settlement how we calculate his gratuity.
Whether (i) We calculate as Basic +D.A / 26 days X 6 years (90 days)
(Or)
(ii) We calculate as Basic +D.A / 26 days X 6.5 Yrs (96 days)
Please mention clearly the Gratuity Act in this case.
With warm regards,
A.Paulraj
From India, New Delhi
Please clear my doubt. If an employee completed his service for 6 years and 5 months then he resigned. When we make his settlement how we calculate his gratuity.
Whether (i) We calculate as Basic +D.A / 26 days X 6 years (90 days)
(Or)
(ii) We calculate as Basic +D.A / 26 days X 6.5 Yrs (96 days)
Please mention clearly the Gratuity Act in this case.
With warm regards,
A.Paulraj
From India, New Delhi
(i) We calculate as (Basic +D.A) * 15 days / 26 days X 6 years (90 days)
ie 15 days salary for every year and six months in part thereof.
ie 6 years and 6 months will be considered 7 years
but 6years, 5 months and 29 days will be considered 6 years only.
also The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.
thanks & regards
bhavik h chheda
www.chhedaconsultancyservices.com
ie 15 days salary for every year and six months in part thereof.
ie 6 years and 6 months will be considered 7 years
but 6years, 5 months and 29 days will be considered 6 years only.
also The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.
thanks & regards
bhavik h chheda
www.chhedaconsultancyservices.com
Dear Paul raj,
Gratuity calculation is = 15 / 26 x last drawn salary ( basic + da ) x no. of service year.
wages for calculation = 15 days wages for every complete year as if the month comprises of 26 days at the last drawn wages.
And here with i am attached the gratuity check list for your referece, go through it.
Regards
N. Arumugam
From India, Tiruchchirappalli
Gratuity calculation is = 15 / 26 x last drawn salary ( basic + da ) x no. of service year.
wages for calculation = 15 days wages for every complete year as if the month comprises of 26 days at the last drawn wages.
And here with i am attached the gratuity check list for your referece, go through it.
Regards
N. Arumugam
From India, Tiruchchirappalli
hey!
May be this will help you the way Gratuity Act works
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, - (a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease : Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Explanation : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned : Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account :
Provided further that in the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days' wages for each season.
Explanation : In the case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.
(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.
(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1), - (a) the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited - (i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Cheers
Sonal
From India, Jamnagar
May be this will help you the way Gratuity Act works
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, - (a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease : Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Explanation : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned : Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account :
Provided further that in the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days' wages for each season.
Explanation : In the case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.
(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.
(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1), - (a) the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited - (i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Cheers
Sonal
From India, Jamnagar
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc