Dear All, Greetings of the day!!!!!!!!!!!! Can Any body help me out to give detailed idea on gratuity act in simple and easy lenguage I shall be very obliged to you Thanks & Regards
From India, Mumbai
5From India, Mumbai
Dear Ajay
Payment of Gratuity Act, 1972 extends to the whole of India.
It shall apply to—
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
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:
the formula for calculating gratutity is
last drawn basic+DA*15/26*no.of years.
to eligible for grautity, 5years continous service required & if there is case of 4 years 10 months or 240 days can be cosnidered.
Maximum gratuity can be given upto Rs10 lakh/-exempted
From India, New Delhi
Payment of Gratuity Act, 1972 extends to the whole of India.
It shall apply to—
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
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:
the formula for calculating gratutity is
last drawn basic+DA*15/26*no.of years.
to eligible for grautity, 5years continous service required & if there is case of 4 years 10 months or 240 days can be cosnidered.
Maximum gratuity can be given upto Rs10 lakh/-exempted
From India, New Delhi
Dear Mr.Ajay, Please find herewith attached detail of gratuity act in simple and easy language...........
From India, Haldwani
From India, Haldwani
Dear Mr. Ajay , Good evening Details for gratuity please check attachment Regards Ram Navghare Manager - IR & Admin
If service of a person in an establishment is 40yrs, whether he will get gratuity for entire 40 years or not?
From India, Cuttack
From India, Cuttack
Why not. The eligibility is continuous service of 5 years. The instant case relates to 40 years.Absolutely no issue regards bk mohanty Director Cypress Management Associates
From India, Bhubaneswar
From India, Bhubaneswar
Dear Ajay, one small correction in first reply there no need to complete continually five year in death or disablement case. regards, Gautam Patel
From India, Ahmadabad
From India, Ahmadabad
Mr. Kuldeep Rawat Can Gratuity act applicable in Gross salary(Basic+HRA+M.A+D.A)? AND what is provision in law.
From India, Delhi
From India, Delhi
Dear all ,
This post is really helpful to me , but I have same technical doubt like -do the company need to get registrar with any govt org. like the way PF is or the gratuity amount is just paid from companies account as retirement payment to eligible persons.
Thanks and regards
Sangeeta
From India, Bangalore
This post is really helpful to me , but I have same technical doubt like -do the company need to get registrar with any govt org. like the way PF is or the gratuity amount is just paid from companies account as retirement payment to eligible persons.
Thanks and regards
Sangeeta
From India, Bangalore
Dear Members,
In reference to Ms Sangeeta's query,I wish to mentioned that unlike PF Act, you don't need to register your establishment under the Payment of Gratuity Act,1972,but once the Act is applicable to you,you are supposed to inform to the Controlling Authority of the Area under Rule 3(1) of the Central or State rules as the case may be.You are to maintain nomination forms in respect of all the employees.The controlling Authority is the authority to decide all the disputes relating the the payment of gratuity.
As regards the clarification of Sh Rawat is concerned,the wages shall consist of basic plus D.A, as per last drawn salary. However, allowances like bonus, commission, HRA, overtime etc. are not to be considered for calculations. [section 2(s)].
As regards the doubt of Sh Mohapatra is concerned, the no.of year of service is immaterial for the purpose of calculation of gratuity but the amount of gratuity is limited to RS.10 Lakhs, which has been increased from 3.5 lakhs recently.
BS Kalsi
Contributing member
From India, Mumbai
In reference to Ms Sangeeta's query,I wish to mentioned that unlike PF Act, you don't need to register your establishment under the Payment of Gratuity Act,1972,but once the Act is applicable to you,you are supposed to inform to the Controlling Authority of the Area under Rule 3(1) of the Central or State rules as the case may be.You are to maintain nomination forms in respect of all the employees.The controlling Authority is the authority to decide all the disputes relating the the payment of gratuity.
As regards the clarification of Sh Rawat is concerned,the wages shall consist of basic plus D.A, as per last drawn salary. However, allowances like bonus, commission, HRA, overtime etc. are not to be considered for calculations. [section 2(s)].
As regards the doubt of Sh Mohapatra is concerned, the no.of year of service is immaterial for the purpose of calculation of gratuity but the amount of gratuity is limited to RS.10 Lakhs, which has been increased from 3.5 lakhs recently.
BS Kalsi
Contributing member
From India, Mumbai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc