R.N.Khola
Labour Laws & Ir
Mahesh S Patil
Hr Generalist- Statutory Compliance,salary
Mukeshjoshi
Hr & Admin
Angelmona
In Pharma Co.
+10 Others

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
7th April 2009 From India, Lucknow
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]
22nd April 2009 From India, Delhi
Hi Meenu, Find the attachment. You can find all the details about gratuity in this article. thanks, Sudesna
17th July 2009 From India, Bhubaneswar

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File Type: pdf Article on Gratuity.pdf (702.4 KB, 4802 views)

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.
16th September 2009 From India, Hyderabad
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...
16th September 2009 From India, Bangalore

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File Type: doc RulesofPaymentOfGratuity.doc (194.5 KB, 3426 views)

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?
9th March 2010 From India, Hyderabad
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
30th March 2010 From India, Bangalore
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
18th August 2010 From India, Jamnagar
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




13th November 2010 From India, Delhi
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]
20th July 2012 From India, Mumbai
I am working with ltd. co. since last 11 years. Our company not benefits gratuity to any person who left our organisation. Please advised if I will resign. i will claim for gratutiy or not.
20th July 2012 From India, Mumbai
can anybody help me whether the engg college and medical college is covered under gratuity
15th April 2013 From India, Bangalore
Can the employer decide not to pay gratuity to an employee under certain circumstances? If yes, then under what circumstances?
28th August 2013 From India
Dear,
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 Rs350000/-exempted .
m hereby attaching some doc regarding this for the reference.
Regards
Vipin8-)
28th August 2013 From India, New Delhi

Attached Files
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File Type: xls gratuity_computation_116(1).xls (18.5 KB, 795 views)
File Type: ppt GRATUITY.ppt (99.0 KB, 648 views)

latest the ceiling raised to 10 lakh and bill have been passed and i think gazette also issued sampath.s jt.gen.secy, tnstc staff federation, madurai 94420 36044
28th August 2013 From India, Madurai
Hi Friends
let me clarify, as per the section1.3(b) of pament of Gratuity Act-,1972 , organisations having 10 or more employees are eligible to pay gratuity. whether is ther any provision is there that on complition of 10 yrs of commercial operation, that organisation is compulsion to give gratuity irrespective of 10 or less employees.
29th August 2016 From India, Durgapur
Dear Friends,

Under Section 4 of the payment Gratuity Act 1972 gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years.

Termination of employment may result from

superannuation,

retirement,

resignation,

death,

disablement due to accident/disease.

As held in the case of darshan Engineering Works vs controlling authority where an employee continues to work after superannuation he will be entitled to gratuity for the entire period and not only up to his superannuation.

Under explanation to section 4(1) disablement means such disablement as incapacitate an employees from the work which he was capable of performing before the accident or disease resulting in such disablement. Under Section 4(4) if an employee continue in his is current employment after disablement at reduced wages, the gratuity for the period upto his disablement is to be calculated at such wages as he was being paid before disablement. The gratuity for the period after disablement is to be calculated on such reduced wages.

Under provision 1 to Section 4(1), the provision of continuous service of 5 years shall not be necessary where did termination of employment happened due to death or disablement. In case of death the amount of gratuity be paid to the nominee. If there was no nomination made gratuity shall be paid to the heir. Where the nominee or heir is a minor then the amount of gratuity shall be submitted to the controlling authority. The minor can use this fund when he attains majority.

See Payment of Gratuity Act, Rules, Forms, Returns & All Other Information for total act summary
24th October 2016 From India, Kolkata
Hi This is Rajeswari working as HR Executive for a pvt concern. Am enclosing Gratuity calculater with this
2nd January 2017
Hii All,
I have a question regarding gratuity , if one employee completed his 1 year with the establishment and after that in leave 13th month he died.
1. is he eligible to get the gratuity
2. if yes in which judgment this writted
also one another question to all if any establishment started with 40 persons after 4 year company dissolve only 9 persons are there in 5th year.
1. is the company bound to pay gratuity to every employees who completed 5 years
2. if yes in which judgement it has been written
31st August 2018 From India, undefined
Dear Rashmitha, Please Clarify "after that in leave 13th month he died." I presume Employee died while being in Service.Consequent to deceased Employee completing 1 Year of Service, he is eligible for Gratuity
Reduction in strength of Employees from 40 to 10: Once the act is made applicable, it continues to be applied though there is decrease in strength.
Please peruse relevant Acts/Rules, thoroughly.You will find answer to all your questions
31st August 2018 From India, New Delhi
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