Re: Gratuity Amount Limit

Is there is any change in the gratuity amount limit? Please do reply with the source document which has ruled a change in the same. Thanks

Dear
Not changed so far. Plz be informed that this information relates to Payment of Gratuity Act, 1972.
With Regards,
R.N.Khola

The payment of Gratuity Act 1972
Maximum Celing Amount 3,50,000/-
Caclulation = {Lastdrawn(Basic+DA)*15*no.of years}/26
Regards
Charvaka Reddy

The payment of Gratuity Act 1972
Maximum Celing Amount 3,50,000/-
Caclulation = {Lastdrawn(Basic+DA)*15*no.of years}/26
Regards
Charvaka Reddy

Is there require minimum five year ?
If Yes the the 1st year training or probation period include or not ?

Dear Ashish,
Yes minimum 5 years are required for gratuity.
You asked that whether training period or probation period included or not?
See, employee gets a appointment letter along with salary break up at the time of joining and probation period is also mentioned in that. Employee gets all the benefits like PF, SA, perks etc. just as other regular employees. After completion of probation period, company may confirm his services with or without any salary hike. Only difference would be the notice period. So probation period is very much included while calculating the service.
Now in case of training, if employee is getting only consolidated stipend, and it is mentioned in his engagement letter that you would not be entitled to rights of regular employees, then his training period would not be considered.
Please comment.
RRS

Ashish
The payment of Gratuity Act 1972
Yes minimum 5 years are required for gratuity.
limit 3.5 lacs
=15/26* no of years of service*last drawn salary (PF wages)

thanks a lots for your reply.
Can any body how many Acts. are related to Contract Labour ?
like Payment of Wages, Minimum wages, Contract labour AR act, WC policy act ?
can any body describe in detail ?