Respected Seniors,
The Payment of Gratuity Act, 1972 specifies minimum continuous service of 5 years to be eligbile for gratuity benefits, but is silent on the maximum number of service. It has simply mentioned the amount of Gratuity limit to be Rs.10lac.
Does it mean, a person who has more than 33 years, in the present case 37 years, is eligible for gratuity?, computed as under:
salary X 15/26 x 37 = gratuity amount, and the amount of gratuity is within the prescribed limit of Rs.10 lac as amended by notification dated May 24, 2010.
kindly guide.
regards
Harminder
From India, Delhi
1The Payment of Gratuity Act, 1972 specifies minimum continuous service of 5 years to be eligbile for gratuity benefits, but is silent on the maximum number of service. It has simply mentioned the amount of Gratuity limit to be Rs.10lac.
Does it mean, a person who has more than 33 years, in the present case 37 years, is eligible for gratuity?, computed as under:
salary X 15/26 x 37 = gratuity amount, and the amount of gratuity is within the prescribed limit of Rs.10 lac as amended by notification dated May 24, 2010.
kindly guide.
regards
Harminder
From India, Delhi
An employee is entitled for the entire service without any maximum limit, put in by him till the date of retirement to be counted for gartuity, provided that if the amount exceeds Rs.10 lakhs, he is leigible only for 10 lakhs.
B.Saikumar
Hr & Labour Law advsior
Mumbai
From India, Mumbai
B.Saikumar
Hr & Labour Law advsior
Mumbai
From India, Mumbai
Thanks Mr. Saikumar! I have further researched various judgement. This calculation formula is also applicable under Industrial Dispute Act. regards Harminder
From India, Delhi
From India, Delhi
If a person who had 30 years of service on retirement date is given 4 more years extension without break will he get Gratutity for 34 four years?
From India, Chennai
From India, Chennai
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc