Hi, dear HR fraternity! I am working in a construction company. We were covered under EPF in the year 2007 with a staff of 20 employees, and now we have 200 employees. Currently, we are not deducting any gratuity contributions from our employees, and we are not registered with any department concerned with gratuity. By next year, some of our employees will have completed five years of service. Can anyone suggest to me what I should do?
From India, Hyderabad
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From India, Hyderabad
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Hi, dear HR fraternity! I am working in a construction company. We have been covered under EPF since 2007 with a workforce of 20 employees, and currently, we have 200 employees. However, we are not registered with any department related to Gratuity. Next year, some of our employees will complete 5 years of service. Can anyone suggest what I should do?
From India, Hyderabad
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From India, Hyderabad
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Please refer to the Payment of Gratuity Act. If the strength of your company is more than 10, then obviously, without any doubt, you have to pay the Gratuity, and you should not deduct any amount from the salary of the employees. The Gratuity is a reward for employees who are leaving the service after serving for 5 years or more tenure.
There are some insurance policies available with LIC Of India. Please consult the nearest LIC Office, who can guide you with the details of the Gratuity Policy. Your company has to pay the policy premium amount, and there should not be any deduction in the salary of any employee.
With the collected details from LIC of India, you can discuss with your management and start implementing the same.
Wish you all the best.
From India, Kumbakonam
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1189There are some insurance policies available with LIC Of India. Please consult the nearest LIC Office, who can guide you with the details of the Gratuity Policy. Your company has to pay the policy premium amount, and there should not be any deduction in the salary of any employee.
With the collected details from LIC of India, you can discuss with your management and start implementing the same.
Wish you all the best.
From India, Kumbakonam
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc