Dear All,
Wish you a very happy & prosperous year 2014.
The question was simple as to whether Gratuity is payable in the event of death of an employee prior to rendering 5 years of service. A simple answer was given by Sri Hari & Mr. Despandey that : 1) Gratuity will be payable. (2) It will be paid upto the date of retirement/superannuation in case the payment of gratuity is linked up with LIC of India or any such insurer.
Thereafter the discussion has deviated from its main objective, as to whether the gratuity will be paid in case of service is less than 6 months or not etc. etc. There is specific mention in the Act that if the period is less than 6 months it is to be ignored and if six months or more, it is to be reckoned as one year.
I have humbly suggested earlier also to please refer to Bare Acts before raising your doubts. Raising such discussions does not speak good of our new HR professionals who are much more qualified that the old school of thoughts in HR fields which used to be known as Personnel, Welfare & Industrial Relation. I shall highly appreciate if discussions raise their standards and this can be done only with constant reading. Good Luck to all.
AK Jain
From India, Jabalpur
146Wish you a very happy & prosperous year 2014.
The question was simple as to whether Gratuity is payable in the event of death of an employee prior to rendering 5 years of service. A simple answer was given by Sri Hari & Mr. Despandey that : 1) Gratuity will be payable. (2) It will be paid upto the date of retirement/superannuation in case the payment of gratuity is linked up with LIC of India or any such insurer.
Thereafter the discussion has deviated from its main objective, as to whether the gratuity will be paid in case of service is less than 6 months or not etc. etc. There is specific mention in the Act that if the period is less than 6 months it is to be ignored and if six months or more, it is to be reckoned as one year.
I have humbly suggested earlier also to please refer to Bare Acts before raising your doubts. Raising such discussions does not speak good of our new HR professionals who are much more qualified that the old school of thoughts in HR fields which used to be known as Personnel, Welfare & Industrial Relation. I shall highly appreciate if discussions raise their standards and this can be done only with constant reading. Good Luck to all.
AK Jain
From India, Jabalpur
Dear All,
I have joined my organization on 10.10.2008. i have completed my five working year & now eligible for Gratuity as per act. details of my salary breakup mentioned below.
Basic Salary:- 8633
HRA - 4316
Residual Choice pay- 10186.
Monthly Bonus - 292
as per above details. please calculate my Gratuity amount. thanks
Regard
Manish kumar singh
Store Manager
From India, Lucknow
I have joined my organization on 10.10.2008. i have completed my five working year & now eligible for Gratuity as per act. details of my salary breakup mentioned below.
Basic Salary:- 8633
HRA - 4316
Residual Choice pay- 10186.
Monthly Bonus - 292
as per above details. please calculate my Gratuity amount. thanks
Regard
Manish kumar singh
Store Manager
From India, Lucknow
two issues :
a) anount payable on death will hv to be verified as per Act
b) In case of employee continuing after retirement age of 58, is gratuity payable till he ultimately resigns, say at age 70, or only till retirement age of 58 !
From India, Jamnagar
a) anount payable on death will hv to be verified as per Act
b) In case of employee continuing after retirement age of 58, is gratuity payable till he ultimately resigns, say at age 70, or only till retirement age of 58 !
From India, Jamnagar
Many members have deviated from the question and answered as they liked. The social security benefits for a demised worker are:
1)Even if service is less than 5 years, his dependent will get gratuity worked out from DOJ to his DOD. It is calculated on last drawn Basic.
2) Workmen compensation shall be worked out based on his last drawn Basic and taking his retirement age for loss of earning potential.
3) EPF benefits to his dependents and subsequent pension from EPS to his widow/children and Insurance fund from EDLI.
4) If worker was in ESI coverage, his dependents can avail usual ESI benefits till his widow/legal heir is alive by renewing the ESI card annually.
5) If worker is lady (under ESI coverage) who died during maternity/delivery, dependent and child benefit shall be claimed and also all other benefits mentioned above.
I often see that the question thread is dragged on by members without a proper reply. Hope my answer satisfies your expectation.
Regards
Chandru
From India, Madras
1)Even if service is less than 5 years, his dependent will get gratuity worked out from DOJ to his DOD. It is calculated on last drawn Basic.
2) Workmen compensation shall be worked out based on his last drawn Basic and taking his retirement age for loss of earning potential.
3) EPF benefits to his dependents and subsequent pension from EPS to his widow/children and Insurance fund from EDLI.
4) If worker was in ESI coverage, his dependents can avail usual ESI benefits till his widow/legal heir is alive by renewing the ESI card annually.
5) If worker is lady (under ESI coverage) who died during maternity/delivery, dependent and child benefit shall be claimed and also all other benefits mentioned above.
I often see that the question thread is dragged on by members without a proper reply. Hope my answer satisfies your expectation.
Regards
Chandru
From India, Madras
Dear Manish, your Total Gratuity Amount will be R.24903/- Gratuity Calculation Base on below:- Total Salary(Basic+ DA)X15XLenth of service/26 Regds, Nikha
From India, New Delhi
From India, New Delhi
General rules for payment of Gratuity
Eligibility
Any employee who has rendered continuous service of not less than five years will be eligible for claiming gratuity under the payment of Gratuity Act, 1972. Temporary / Trainee period will also be eligible for the purpose of Gratuity calculation provided it is continuous in nature & not covered under the Apprentices Act, 1961.
Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days salary based on rate of salary last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
26
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
3. Any excess payment above the ceiling of Rs. 3,50,000/- will be taxable income in the hands of the employee.
General instructions for filling the Gratuity Application form-I
Statement details Requisite to be filled up in the form
1. Address Complete postal address where the details of gratuity settlement needs to be dispatched
2. Bank A/c details Mention your complete bank particulars where the Gratuity is to be deposited
3. Total period of service Employee total years of service in L&T ECC including training / temporary period if it is continuous in nature will be reckoned for Gratuity calculation purpose. This should be mentioned in “Years / Month / Days” format.
In addition to the above, it is mandatory for the Staff to affix a Re.1/- Revenue Stamp & duly sign the advance stamp receipt.
General rules for payment of Gratuity to a Nominee
Eligibility
Nominee of an employee who had deceased is eligible for claiming gratuity under the payment of Gratuity Act, 1972 though the staff had not rendered continuous service of five years of service in our Company. Temporary / Trainee period will also be eligible for the purpose of Gratuity calculation provided it is continuous in nature & not covered under the Apprentices Act, 1961.
Nominee for the purpose of Gratuity will be normally the Legal heirs of the deceased employees. If the deceased employee is in bachelor status, his nominee will be the legal heirs or the Gratuity nominee if any given by the staff. Else, the deceased employee spouse will automatically be reckoned as nominee for the purpose of claiming Gratuity. In addition, Mother of the deceased employee can also claim her share in the Gratuity. If there is no
Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days salary based on rate of salary last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
26
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
3. Any excess payment above the ceiling of Rs. 3,50,000/- will be taxable income in the hands of the employee.
General instructions for filling the Gratuity Application form -J
Statement details Requisite to be filled up in the form
1. Address Complete postal address where the details of gratuity settlement needs to be dispatched
2. Bank A/c details Mention your complete bank particulars where the Gratuity is to be deposited
3. Total period of service Employee total years of service in L&T ECC including training / temporary period if it is continuous in nature will be reckoned for Gratuity calculation purpose. This should be mentioned in “Years / Month / Days” format.
4. Date / Proof of death Nominee while claiming the Gratuity should enclose the legal heir certificate / death certificate of the deceases employee.
In addition to the above, it is mandatory for the Staff to affix a Re.1/- Revenue Stamp & duly sign the advance stamp receipt.
From India, Chennai
Eligibility
Any employee who has rendered continuous service of not less than five years will be eligible for claiming gratuity under the payment of Gratuity Act, 1972. Temporary / Trainee period will also be eligible for the purpose of Gratuity calculation provided it is continuous in nature & not covered under the Apprentices Act, 1961.
Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days salary based on rate of salary last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
26
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
3. Any excess payment above the ceiling of Rs. 3,50,000/- will be taxable income in the hands of the employee.
General instructions for filling the Gratuity Application form-I
Statement details Requisite to be filled up in the form
1. Address Complete postal address where the details of gratuity settlement needs to be dispatched
2. Bank A/c details Mention your complete bank particulars where the Gratuity is to be deposited
3. Total period of service Employee total years of service in L&T ECC including training / temporary period if it is continuous in nature will be reckoned for Gratuity calculation purpose. This should be mentioned in “Years / Month / Days” format.
In addition to the above, it is mandatory for the Staff to affix a Re.1/- Revenue Stamp & duly sign the advance stamp receipt.
General rules for payment of Gratuity to a Nominee
Eligibility
Nominee of an employee who had deceased is eligible for claiming gratuity under the payment of Gratuity Act, 1972 though the staff had not rendered continuous service of five years of service in our Company. Temporary / Trainee period will also be eligible for the purpose of Gratuity calculation provided it is continuous in nature & not covered under the Apprentices Act, 1961.
Nominee for the purpose of Gratuity will be normally the Legal heirs of the deceased employees. If the deceased employee is in bachelor status, his nominee will be the legal heirs or the Gratuity nominee if any given by the staff. Else, the deceased employee spouse will automatically be reckoned as nominee for the purpose of claiming Gratuity. In addition, Mother of the deceased employee can also claim her share in the Gratuity. If there is no
Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days salary based on rate of salary last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
26
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
3. Any excess payment above the ceiling of Rs. 3,50,000/- will be taxable income in the hands of the employee.
General instructions for filling the Gratuity Application form -J
Statement details Requisite to be filled up in the form
1. Address Complete postal address where the details of gratuity settlement needs to be dispatched
2. Bank A/c details Mention your complete bank particulars where the Gratuity is to be deposited
3. Total period of service Employee total years of service in L&T ECC including training / temporary period if it is continuous in nature will be reckoned for Gratuity calculation purpose. This should be mentioned in “Years / Month / Days” format.
4. Date / Proof of death Nominee while claiming the Gratuity should enclose the legal heir certificate / death certificate of the deceases employee.
In addition to the above, it is mandatory for the Staff to affix a Re.1/- Revenue Stamp & duly sign the advance stamp receipt.
From India, Chennai
Dear Sir,
I am facing one problem please guide and advice me what should i do.
I had joined a company (mid of the month )and resigned in a month (exact 24 days) but i received my salary on prorata basis.
I have not got appointment letter nor signed on appointment letter(HARD COPY) , i received only offer by email and i revert back it the acceptance , then i went to Head office for joining formalities and training .
There was a page in the set of documents
My Commitment
I, Mr./Ms.____________, as a member of the company, have read and understood the Group’s Corporate Principles and Code of Conduct. I, hereby, commit to abide by this document in letter and spirit, a copy of which has been made available to me.
Name:
Signature: _____________________________
Date : __________
Note : Each employee is requested to complete this note and hand it over duly signed to the HR Division of your Unit (to be retained in the Employee File)
But I am not having any copy of the same
and this is second page.........
Annexure IA
Personal Commitment to Company
Code of Conduct & Group Values
I acknowledge that I have read the Code of Conduct and the Group Values and understand my obligations as an employee.
I undertake to uphold the Organization Standards that the Group Values set and comply with the principles stated and implicit in the current Code of Conduct (including any amendments in the future.)
Signature:__________________ Date: __________
Name: ____________________ Empl ID: _____________________
At the time of exit , they were threatening me that , they will file a legal case against me if i am not serving notice period.
Now what are the complication may arise
1 They will file a legal case or any legal action against me ?
2 If they recover the amount they had spend on me , so recovery amount would be actual or imaginary
3 I have not signed appointment letter nor received appointment letter, so how can company take any legal action.
4 I have not notice period.
5 Should i entertain any notice/deny to accept it.
How to over come this ............please advise.
Thanks & Regards
Euro
From India, Mumbai
I am facing one problem please guide and advice me what should i do.
I had joined a company (mid of the month )and resigned in a month (exact 24 days) but i received my salary on prorata basis.
I have not got appointment letter nor signed on appointment letter(HARD COPY) , i received only offer by email and i revert back it the acceptance , then i went to Head office for joining formalities and training .
There was a page in the set of documents
My Commitment
I, Mr./Ms.____________, as a member of the company, have read and understood the Group’s Corporate Principles and Code of Conduct. I, hereby, commit to abide by this document in letter and spirit, a copy of which has been made available to me.
Name:
Signature: _____________________________
Date : __________
Note : Each employee is requested to complete this note and hand it over duly signed to the HR Division of your Unit (to be retained in the Employee File)
But I am not having any copy of the same
and this is second page.........
Annexure IA
Personal Commitment to Company
Code of Conduct & Group Values
I acknowledge that I have read the Code of Conduct and the Group Values and understand my obligations as an employee.
I undertake to uphold the Organization Standards that the Group Values set and comply with the principles stated and implicit in the current Code of Conduct (including any amendments in the future.)
Signature:__________________ Date: __________
Name: ____________________ Empl ID: _____________________
At the time of exit , they were threatening me that , they will file a legal case against me if i am not serving notice period.
Now what are the complication may arise
1 They will file a legal case or any legal action against me ?
2 If they recover the amount they had spend on me , so recovery amount would be actual or imaginary
3 I have not signed appointment letter nor received appointment letter, so how can company take any legal action.
4 I have not notice period.
5 Should i entertain any notice/deny to accept it.
How to over come this ............please advise.
Thanks & Regards
Euro
From India, Mumbai
Friend,
Inferring from the query , I feel that the gratuity will be paid on death to the extent of service only as per Act.
In case, the comapany has an insurance policy with additional premium for this benefit they are getting till
the date of retirement.
The quantum of money payable to the widow / next of kin may defer subject to availability of other allied
official data & personnel parameters of the deceased.
Take care,
Sourav Mukherjee
From India, Bangalore
Inferring from the query , I feel that the gratuity will be paid on death to the extent of service only as per Act.
In case, the comapany has an insurance policy with additional premium for this benefit they are getting till
the date of retirement.
The quantum of money payable to the widow / next of kin may defer subject to availability of other allied
official data & personnel parameters of the deceased.
Take care,
Sourav Mukherjee
From India, Bangalore
Any employee will e eligible for the gratuity when he completed the 5 years work in the company...
gratutity is paid to the employee when any employee do the work till the five years..in the same company... according to gratutity act.
om Prabh
From India, Delhi
gratutity is paid to the employee when any employee do the work till the five years..in the same company... according to gratutity act.
om Prabh
From India, Delhi
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