Gratuity Payment - Company Procedures

Gentleman, I am sorry to say that your first post itself is a negative one. If the information is wrong, what is right ? You could have corrected the wrong information.

Gratuity Eligibility:
completed of 4 years and 8 months (240 days) is eligibility to avail gratuity.
calculation of Gratuity after eligibility:
completion of years will be calculating once complete of 6 months every year.
for e.g
Date of Joining = 01.01.1994
Date of Leaving = 31.06.2000
Calculation of year should be take 6yrs 6 months (rounded of 6 yrs) only
Date of Joining = 01.01.1994
Date of Leaving = 01.07.2000
Calculation of year should be take 7yrs only
For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wage based on the rate of wages last drawn by the employee concerned.
Gratuity shall be payable to an employee :
On his superannuation, or
On his retirement or resignation, or
On his death or disablement due to accident or disease
On his termination of his employment after has rendered continuous service for not less than five years.
Rubalingam.D
Asst. Manager - HR

Can anybody tell me how the company manage the fund for gratuity. can the company deposit the amount monthly like epf is there any form for the employee to claim the gratuity.

Dear Shri Washington ji,
The gratuity due at the rate given in the above posts will have to be paid by your company to the outgoing employee. The government is no way concerned for payment of gratuity as it is concerend in the case of PF, Deposit linked insurance benefit, pension etc. Some companies make arrangements with insurance companies beforehand for payment of gratuity to their employees in the case of retirement, resignation, death etc. If there is no such arrangement made by your company, you will have to pay the gratuity to the resigning employee within 30 days from the date of receipt of his application. For delayed payment, simple interest is payable. The government comes in the picture only if the ex-employee files a complaint about non-receipt of gratuity against his former employer. The Labour Commissioner (State or Central as the case may be) is competent authority to deal with such complaints.

Shyam Agrawal

Gratuity should be paid by the company, once the employee completes his continuous service of 5 years.
The calculation of gratuity is = Last drawn Baic + Da / 26 *15 * no. of years of service.
For Eg. 5000 (B+DA)/26*15*5 (no. of years) = 14423/-
regards
Poornima

Dear friend,
Gratuity being paid in recognition of one's services to an employer, if one loses the employment due to misconduct, the gratuity is not payable to him/her. The cause of removal should be punishment on account of misconduct and not retrenchment.

Dear Member,
First go through section 4(6) of the Payment of Gratuity Act, 1972 & then take decision accordingly in this matter.
Regards,
R.N.Khola