Dear Seniors and Collegues,
Just want to update myself on the below querry:-
1-In case if an employee is on the rolls of the company and not completed the 5 years of service thsan gratuity is not payable to this employee? if yes than for how many years?
2- If an employee is on the rolls of the company and have complted 5 years of continuos service. Than yeas gratuity is payable but for how many years i.e. the actual no of years those he served or till the year of superannuation?
Please share your views. I have tried to go through the act but unable to find details of such cases.
Some one had updated me that in case of death of an employee that gratuity is payable for number of years in which he will attain the superannuation age.
Please share your views.
Regards
Ranjeet
From India, New Delhi
11Just want to update myself on the below querry:-
1-In case if an employee is on the rolls of the company and not completed the 5 years of service thsan gratuity is not payable to this employee? if yes than for how many years?
2- If an employee is on the rolls of the company and have complted 5 years of continuos service. Than yeas gratuity is payable but for how many years i.e. the actual no of years those he served or till the year of superannuation?
Please share your views. I have tried to go through the act but unable to find details of such cases.
Some one had updated me that in case of death of an employee that gratuity is payable for number of years in which he will attain the superannuation age.
Please share your views.
Regards
Ranjeet
From India, New Delhi
Following the Payment of Gratuity Act in case of death the employer is liable to pay the dependent of the deceased employee gratuity calculated for the service rendered by the employee only. That means if the total service is 4 years, then the employer's liability is to pay gratuity for four years.
However, if the gratuity is under a trust by depositing the annual premia (based on an actuarial valuation) in the Life Insurance Corporation and with an additional premia to link the same to life policy, then the LIC will pay the gratuity which will be equal to an amount projected to the age of superannuation of the deceased. The main attraction of making provision of gratuity fund linked to policy is that the dependents of the deceased employee will get a good amount and on the part of employer the additional premium payable to cover this is also very less.
Regards,
Madhu.T.K
From India, Kannur
However, if the gratuity is under a trust by depositing the annual premia (based on an actuarial valuation) in the Life Insurance Corporation and with an additional premia to link the same to life policy, then the LIC will pay the gratuity which will be equal to an amount projected to the age of superannuation of the deceased. The main attraction of making provision of gratuity fund linked to policy is that the dependents of the deceased employee will get a good amount and on the part of employer the additional premium payable to cover this is also very less.
Regards,
Madhu.T.K
From India, Kannur
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Gratuity notification amendment in definition of employees.pdf