R.N.Khola
Labour Laws & Ir
MANOKAVIN
Manager Hr & Admin
Sn_singh2006
Service At Top Level Management
+10 Others

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Dear Seniors.
I am having few doubts with respect to payment of gratuity.One of my employee has completed his 5 yrs of service out of which he was in onsite for 3 years. Now i wanted to know if he is eligible for gratuity.
Kindly help me on this
Awaiting your guidance.
Regards
Sara

I have a very important question.
My uncle use to work for a pharma firm in ahmedabad.
He is illiterate so he was not aware of any forms that company filled up on his behalf like ESI , PF and all.
Now he has left the company after working for 15 long years and he is not physically fit.
when I jumped in to the matter to know the exact thing that was delaying the PF withdrawal, I got the PF slip from the company and it is showing his nickname instead of his registered name.
because of this reason now I am unable to proceed ahead and the name that his bank account has is different than the one showing in PF record.
Can you please guide me the exact procedure how to take care of the whole issue, and what is the procedure by which I can go to the PF office and change or we can say correct his name?
thanks.
Asia sheikh

Hi Sara
If the employee is on rolls of the same company, the same company is paying for his duties at ONSITE, that implies he had completed 5 years of service with the same company, hence he is eligible for gratuity benefit. It does not matter whether he worked In door Or at site works, but whether he worked for the same establishment/ company and the same company had paid him the wages for all his services, does matter for taking service period.
Mohan Rao
Manager HR

Hi Sara
If the name and style of the organisation is one, and the employer is one, and when the business is one, then the service is also one to be counted. What ever you pay, you have to settle on the basis of his last paid salary i.e. Basic and Plus DA if paid at the time of his settlement.
Mohan Rao
Manager HR

Dear Sara, YES,He iS ELIGIBLE FOR GRATUITY because He has completed five years in the same organization
Dear
Plz go through section 4 of the Payment of Gratuity Act, 1972 for having knowledge on calculation of gratuity amount.
With Regards,
R.N.Khola

Things to remember:
Gratuity is paid for Good Gratitude.
1.If an employees has completed 5 years continuous service in an establishment, he is eligible for Gratuity.
2. Entitlement-15 days salary for each completed years of service or part thereof.
2. Salary = Basic Salary+D.A.
3. As per payment of Gratuity Act, 1972, amount of gratuity should be calculated as follows:
Formula:Salary x no.of completed years of servicex15/26
Say for Example:
Salary=Rs.5000 (Basic +D.A)
Period of service: 6 years 6 months 15 days
Completed year of service: 7 years
Gratuity= Rs.5000x7x15/26
= Rs.20,192/-
Hope, concepts would have been cleared to you.
Thanks n regards,
Cell No. 9443328010

Things to remember:
Gratuity is paid for Good Gratitude.
1.If an employees has completed 5 years continuous service in an establishment, he is eligible for Gratuity.
2. Entitlement-15 days salary for each completed years of service or part thereof.
2. Salary = Basic Salary+D.A.
3. As per payment of Gratuity Act, 1972, amount of gratuity should be calculated as follows:
Formula:Salary x no.of completed years of servicex15/26
Say for Example:
Salary=Rs.5000 (Basic +D.A)
Period of service: 6 years 6 months 15 days
Completed year of service: 7 years
Gratuity= Rs.5000x7x15/26
= Rs.20,192/-
Hope, concepts would have been cleared to you.
Thanks n regards,
Cell No. 9443328010
__________________
Shesh Nath Singh

Dear Sara,
If an employee has completed continuous service of 5 years, he is eligible for gratuity. It is irrelevant, whether he has worked on site or otherwise. Place of working is not important. Completion of 5 years continuous service in one establishment/factory/ organisation/company is important. I think , your doubts might have cleared now.
Pls. free to call in case you need to have any further clarification on my cell 9443328010.
Thanks n regards,

Hi,



Check this policy i made it for my company.Hope it is usefull for you.

Employee Pension Scheme:-



Objective:-

Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial principles for ensuring long term financial sustenance.



Applicability of the Act:-

The Scheme on its introduction applied on compulsory basis to all the new members of Provident Fund and the existing members who were contributing to the Employees' Family Pension Scheme-1971.



Contribution:-

· No separate contribution is payable additionally by the member for the Pension Scheme benefits. Out of the Employer contribution of 12% towards provident fund, 8.33% is diverted to Pension Scheme and balance 3.67% will be in credit of employee’s name in Provident Fund account.

· If some employers are paying contribution on salary in excess of Rs. 6,500, the excess contribution will be credited to Provident Fund account and not to Pension Scheme.

· No separate administration charges or inspection charges are payable, as these are already paid along with Provident Fund contribution.



Benefits:-

Newly introduced Employees' Pension Scheme-95 provides for following benefit package:

1. Pension for life to the member, on superannuation/retirement and invalidation.

2. To the members of the family upon death of the member:

a. Pension to Widow/Widower for life or till re-marriage.

b. To children/orphan, two at a time additionally upto 25 years of age simultaneously with widow/widower pension.

c. Facility for payment of pension to nominee in the event of member who is unmarried or without any eligible family member to receive pension, and

d. Facility for payment of pension to dependent father/mother in the event the member dies leaving behind no eligible family members and no nomination by such deceased member exists.

3. Scheme Certificate to retain membership of the Scheme till attaining the age of 58 years.







Superannuation/retirement pension under the new scheme will be payable on fulfilling:-

a. Minimum 10 years eligible service and

b. Attaining age of 58 years.

On ceasing employment earlier than 58 years, pension may be availed of by a member at his option, before attaining the age of 58 years but not below 50 years. Such early pension will be subject to discounting factor. However, no such age restriction or eligibility requirement shall apply for pension entitlement on disablement or pension payable to the family members on death of the member. Membership with one contribution is enough in such cases.

Thanks & Regards

Sharen Garg


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