QUERIES
Hi,
In our Establishment, We have started gratuity to our employee, Around more than 10 employees are 05 years,.. Kindly give a suggestions to give the details to the management & Employee,....ASAP reply meee.......
Regards,
Saravanan.M

17th February 2012 From India, Madras

PARTICIPATING IN DISCUSSION:
Sumitk.saxena
Service/manager-hr
Soumik1570
Calcutta University
Munnabhai1971
Sr.executive Hr
Sandeepcp
Service
Amolshinde88
Trainee Hr
Prakashmistry
Sr. Executive Officer
+7 Others

Hi Saravanan,
We give gratuity of employee after completing 5 years of service in the organisation.Gratuity is calculated on 15 days salary of last month salary drawn.Gratuity is calculated on Basic + DA.Maximum limit of gratuity is 3.5 lakh.
If person is dismissed for fraud or theft is not eligible for gratuity though he completed 5 years services but is should have specified in offer letter.
Following is the formula for calculating gratuity
Formula:
Basic+DA/26 x 15 x No.of years service
E.g-
Basic=3500
D=2000
No of years=7 yrs

Gratuity = 3500+2000/26 x 15 x7
Gratuity = 22,211.54
Hope information provided by me is useful for you.
Regards,
Amol
17th February 2012 From India, Mumbai
Hi,
You can calculate gratuity payable and all other details of all such employees and then present to the management. The formula to calculate is given by the other member is correct. Additionally, you have to calculate gratuity on the last drawn salary.
Regards,
Neha
17th February 2012 From India
Dear Amol, The gratuity payable ceiling has been increased from 3.5 to 10 Lakhs. (Ref. Payment of Gratuity (Amendment) Act, 2010 (No. 15 of 2010), dated 17-5-2010)
17th February 2012 From India, Mumbai
Dear Amol,
It is not correcting, it is just an updation which you would have not come across.
Everyone here is to learn new things every day. Every day some amendments come which i may also don't know unless some member update it.
Happy learning
17th February 2012 From India, Mumbai
Hi : Talk to LIC of India they have a separate division for gratuity. They do a good job for getting a policy ready as well as managing the funds
18th February 2012 From India, Mumbai
Dear Sir, Gratuity is payable while leaving from service after completion of 5 years Service. You need not give to the persons working for more-than 5 years service. D.Gurumurthy HR/IR Consultant
18th February 2012 From India, Hyderabad
Dear Amol Ji,
You said you are giving gratuity to employees after completing five years service. May I request you to please explain this to me? Are you giving gratuity to the employees after completion of 5 year service even they are in service or only when they finally part with you? Gratuity is to be paid only at the time of leaving service permanently and not if a employee continues in service beyond 5 years. It is to be paid only once at the end of one's service and not during service after completion of spell of 5 years. I interpreted your words literally and have given this explanation. If you are already following this, please ignore this. Thanks & regards,
18th February 2012 From India, Pune
Hi,
A small confusion in your line, sorry,, actual we started this year only to give gratuity to employees as per the payment of gratuity act. As per i need to prepare the gratuity policy and submit to management.So Kindly clarify or post any gratuity manual samples to prepare ASAP.
Keenly awaiting for reply?????
Regards,
Saravanan.M
18th February 2012 From India, Madras
Dear Saravanan Ji,

Gratuity is payable only when an employee's services are permanently terminated due to resignation, retrenchment, incapacity due to accidental injury, death etc. While gratuity is payable after completion of 5 year service continuously, this condition of 5 year continuous service is not applicable if the employee dies while in service. Gratuity is payable in the event of death even if he has not completed five year service. For preparing gratuity policy for your firm, you may please study similar policies of public sector undertakings like Food Corporation of India, nationalized banks, co-operative banks etc. They have established policies. You may adopt them with suitable changes. Some employers now resort to gratuity policies of Life Insurance Corporation of India. They pay periodical premium to the LIC. When gratuity becomes payable to some employee, the LIC meets the liability. You may contact nearest LIC office and get more details from them.

Thanks & regards,
18th February 2012 From India, Pune

Please login to participate in this discussion or start your own. Create Account





About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network

All rights reserved @ 2017 Cite.Community™