Gratuity Act - Esi & Pf
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Gratuity Act - Esi & Pf

meenu.m1@citehr.com Started The Discussion:

Dear All
Please let me know about the grauity act how we calculate the gratuity of employee? what is the minimum & Maximum gratuity what is the formula for claculating the gratuity.

Kindly send me the graduity act for getting ddeply knowledge about the gratuity.

could any one will tell me in detail explanation.

Thanks
Niru

karan4487 - Member Since: Aug 2008
What is Gratuity?:
‘Gratuity’ is a retrial benefit. This act envisages in providing a retirement benefit to the workman who have rendered long and unblemished service to the employer. Gratuity is a reward for long and meritorious service.
Applicability of the Act:
Every factory ,mine,oilfield,plantation ,port,railways,company,shop,establishment or educational institutions employing ten or more employees.
When is Gratuity Payable?
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.
b. On his retirement or resignation.
c. On his death or disablement due to accident or disease.
NOTE: However, the condition of five years of continuous service is not necessary if service is terminated due to death or disablement.
To whom is Gratuity Payable?
Gratuity is normally payable to the employee himself, however in the case of death of the employee it shall be paid to his nominee & nomination has been made to his heirs. Incase the nominee is a minor; share of the minor shall be deposited with the controlling authority who shall invest the same for benefit of the minor, until he/she attains majority.
Amount of Gratuity Payable – Method of Calculation:
In case of non –seasonal establishment:
Gratuity Payable = 15 days wages x No of completed years of service,
In case of seasonal establishment:
Gratuity Payable= 7 days wages x No of seasons for which employed.

Maximum Limit of Gratuity
The government through an ordinance has enhanced the maximum limit of the amount of gratuity payable under the Act is Rs 100,000 to Rs 2,50,000 with effect from 02-04-97.Now at present the maximum limit is 3.5 lacks.

Forfeiture of gratuity:
The gratuity of an employee whose service have been terminated for any Act of willful omission or negligence causing any damage or loss to or destruction of property belonging to the employer, gratuity shall be forfeited to the extent of the damage or loss caused. The right of forfeiture is limited to the extent of damage.
The gratuity payable to an employee shall be wholly forfeited:
1. 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

2. If the service 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.

Thanks[/quote]

sudesna - Member Since: Nov 2008
Hi Meenu, Find the attachment. You can find all the details about gratuity in this article. thanks, Sudesna


Attached FilesProvided by community member sudesna. Join us to learn and grow with your peers.
File Type: pdf Article on Gratuity.pdf (702.4 KB, 3239 views)
ybreddy2004 - Member Since: Aug 2008
Hi Karan,

I have few doubts on gratuity?
1. I am working in clinical research organisation, IS the CROs comes undera Gratuity act?
2. For Gratuity, can i get any registration like ESI & PF?
3. For Gratuity, what type of forms needs to fill.
4. For Gratuity, can i fill & pay the amount like ESI & PF.
5. If employee completed 5 yrs at the time of relieving, what type of forms he needs to fill & where i need to submit the forms for withdrawal.

mahesh s patil - Member Since: Apr 2009
Hi All

pls find the attached Gratuity Rules.

Maximumum limit : 3,50,000/-
Eligibility: Minimum 5 yrs & every year he had to worked 240 days and above.

Calculation : =Last drawn Basic + DA*15*No Of yrs of Service / 26


Hope the information will be helpful.

any comments pls share...


Attached FilesProvided by community member mahesh s patil. Join us to learn and grow with your peers.
File Type: doc RulesofPaymentOfGratuity.doc (194.5 KB, 2289 views)
kannanrajaram - Member Since: Jan 2009
What is the rule in case of long leaves taken during service. For eg. if I have worked in an organization from 2002 to 2009, but had taken (approved) leaves for one year for family reasons, will that cause me to lose my eligibility for Gratuity? My employer refuses to pay me Gratuity stating this - can I do something to get it?

acompleteman4u - Member Since: Mar 2010
Hi,

I am working for a Software company, i joined on 25th May 2005 and i have resigned from the company and my last working day is 9th April 2010.

My question is, am i eligible for Gratuity? as some places i have seen that to get a gratuity you have to work for 4 years and 260 days.

Please reply quickly.

Regards,

Arun

mukeshjoshi - Member Since: Sep 2009
Dear All,
My self mukesh and i hv worked a Packaging group. we have paid yearly premium for gratuity and now its too more so just i want to know the gratuity insurance is mandatory or not...
Thnx & rgds
Mukesh

R.N.Khola - Member Since: Feb 2009
Dear Mukesh,

Plz see that the Govt. have not made applicable section 4A of compulsory insurance so far as no notification has been issued with regards to its applicability.

R.N.Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law Consultants) (M) 09810405361
www.skylarkassociates.com/
Quote:
Originally Posted by mukeshjoshi View Post
Dear All,
My self mukesh and i hv worked a Packaging group. we have paid yearly premium for gratuity and now its too more so just i want to know the gratuity insurance is mandatory or not...
Thnx & rgds
Mukesh

angelmona - Member Since: Jul 2012
have few doubts on gratuity?
1. I am working in clinical research organisation, IS the CROs comes undera Gratuity act?
2. For Gratuity, can i get any registration like ESI & PF?
3. For Gratuity, what type of forms needs to fill.
4. For Gratuity, can i fill & pay the amount like ESI & PF.
5. If employee completed 5 yrs at the time of relieving, what type of forms he needs to fill & where i need to submit the forms for withdrawal.[/QUOTE]



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