Navigating Form 10C and Gratuity: What You Need to Know About PF and Employee Benefits

Understanding Form 10C and Gratuity Rules

Form 10C is required for certain processes related to provident fund (PF) management. It is essential to understand its purpose and the rules surrounding gratuity.

Why Do We Use Form 10C?

Form 10C is used in the context of PF to claim benefits under the Employees' Pension Scheme (EPS). It is necessary when an employee wishes to withdraw their pension fund or get a scheme certificate.

What Are the Rules for Gratuity and How to Calculate It?

Gratuity is a statutory benefit paid to employees who have completed five or more years of service. The calculation is typically based on the last drawn salary and the number of years of service. The formula is: Gratuity = (Last Drawn Salary × 15 × Number of Years of Service) / 26.

Which Form Is Used for PF Nomination and Withdrawal?

For PF nomination, Form 2 is used, while Form 19 is utilized for PF withdrawal.

Regards,

Form 10C is required for the full withdrawal of EPS accumulations under the EPF/EPS and miscellaneous provisions act. The formula for the calculation of gratuity will be last drawn wages (basic + DA) × years of service × 15 / 26. For claiming gratuity, 5 years of service are necessary, or 4 years and 240 days in the 5th year of service are compulsory. For EPF nomination, Form-2 is required, and for withdrawal, Form 19 is necessary.

Thanks & Regards,

Sumit Kumar Saxena