Understanding Gratuity: How It Relates to LIC and When It Can Be Forfeited

Relation of gratuity & lic? How to calculate the gratuity? Forfeiture of gratuity?

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Relation of gratuity and LIC? How to calculate the gratuity? What are the conditions for the forfeiture of gratuity?

Dear,

In accordance with section 4A, a provision was made for the compulsory insurance by the employer for his liability for payment towards the gratuity under this Act from LIC or any other prescribed insurer. However, a notification was required for the enforcement of this provision, which has not been issued so far. Even then, some employers have taken this insurance from LIC on their own without any compulsion or statutory force.

Forfeiture of gratuity can be made keeping in view the provision of section 4(6) of this Act.

With Regards,
R.N. Khola

[QUOTE=patare.sandip;1074250]Relation of gratuity & LIC? How to calculate the gratuity? Forfeiture of gratuity?

PRESENT BASIC X No. OF COMPLETED YEAR X 15
Gratuity = ------------------------------------------------
26

Note: The formula provided above is typically used to calculate gratuity based on the employee's present basic salary, number of completed years of service, and the factor of 15/26. If you have any further questions or need clarification, feel free to ask.

[QUOTE=patare.sandip;1074250]Relation of gratuity & LIC? How to calculate the gratuity? Forfeiture of gratuity?

PRESENT BASIC X No. OF COMPLETED YEARS X 15 Gratuity = ------------------------------------------------ 26

Hi,

One of my friends is working in a private company since August 2002. He is resigning from there in June 2010. Between 2002 and 2010, he went to the U.S. two times for a total of 15 months on an intra-company transfer. He was transferred to the U.S. twice before completing five years of continuous service in India.

Will he be eligible for gratuity? What is the difference between gratuity and group gratuity?

Reg: Gratuity

Hi everybody, I have worked for 4 years and 10 months in a school run by a Private Trust. Please let me know whether I am eligible for gratuity or not. As per the amendment in 2009, the teaching profession was also added to the gratuity act.

Regards,
URMILA YADAV