Under the provisions of Payment of Gratuity Act, 1972, the employees are required to submit their nomination forms in “Form F”
Gratuity shall be payable to an employee only at the time of separation from the company and on the completion of continuous service of five years. However, completion of five years is not necessary in case of death or disablement.
Disablement is a state which incapacitates an employee for the work which he/she was capable of performing before the accident or disease resulting in such disablement.
The services rendered by an employee in all group companies will be taken into account while employee tenure is calculated for Gratuity purpose.
Gratuity is calculated on the last basic pay drawn by the employee at the time of separation. The formula to calculate Gratuity is given below
Basic Pay X No of years in service X (15/26)