Payment of gratuity act applicable to society registered under society act 1860?

vikram-soni1
An society registered under society act 1860. Whether Payment of gratuity act applicable on this yes or no.
Send also notification for the same.
umakanthan53
Dear friend,
The trusts or societies registered under the Societies Registration Act,1860 or under any other law with respect to societies for the time being in force in any State in which 10 or more persons are employed or were employed for wages are notified by the Central Government as a class of establishments u/s 1(3)(c) of the Payment of Gratuity Act,1972 vide its notification S.O.2218 dated 22 .08 .1997. You may refer the Gazette of India, Pt II, Sec.3(ii) dt 06-09-1997 at page 4292.
Therefore, the PG Act,1972 is applicable to such establishments w.e.f 22.08.1997 if their total no. of employees is/was 10 and above and the employees in the service of the establishment as on that date are entitled to gratuity under the Act on the termination of employment, irrespective of the date of their appointment.
SGMC
Hi
Applicability of the Act to trust or societies registered under the Societies Registration Act, 1860
Notification No. S.O. 2218, dated 22nd August, 1997
In exercise of the powers conferred by clause (c) of sub-section (3) of section 1 of the Payment of Gratuity Act, 1972 (39 of 1972), the Central Government hereby specifies the trusts or societies, registered under the Societies Registration Act, 1986 (21 of 1860), or under any other law with respect to societies for the time being in force in any State, in which ten or more persons are employed or were employed for wages on any day of the preceding 12 months as a class of establishments to which the said Act shall apply with effect from the date of publication of this notification in the Official Gazette.
The aforesaid Notification was published in the Gazette of India Part II Section 3 sub-section (ii) on 6th September, 1997
Hence the Payment of Gratuity Act is applicable to Trust and Societies registered under the Societies Registration Act, 1860 with effect from 6th September, 1997.
Regards
P.S.Lakshmanan
S.G. Management Services
Kolkata
azim_1607@yahoo.com
P.S.Lakshmanan Sir,
Kindly share the Notification as elaborated by you for Academic Interest and record.
Regards,
Dinesh Mistry
Dear sir
my query is that if company does not have system of DA for example total gross salary Rs 35,000/- and break up is Rs 12500/- basic and others is allowances , how to calculate Gratuity for completed 8 years , we normally add DA portion as per the DA allowances declared by government notification for teh particular years/month, will it be right for calculation , kindly advice
PRABHAT RANJAN MOHANTY
Your question does not support the posting you made. So it is difficult answer your querry.
The gratuity to be calculated only on Basic, where DA is not followed.
Refer the payslip of last month of the employee(see the break-up of Rs.35000/- whether DA is exist) If DA is not existing then on Rs.12500/-.
umakanthan53
Dear Dinesh,
You can refer to the definition of the term "wages" defined u/s 2(s) of the PG Act,1972 for the purposes of the Act. The definition categorically excludes all allowances other than dearness allowance. In the absence of dearness allowance in the wage structure of the employee concerned, it automatically follows, therefore, his/her last drawn basic wages alone has to be taken for the purpose of calculation of his/her gratuity under the Act;in case of the last drawn wages being a consolidated sum, the entire amount should be taken into account.
However, piquancy is added to the situation described by you in terms of interpretation. In the absence of the component of D.A in the wage structure and the existing basic also happens to be less than the sum total of the basic plus D.A of the statutory minimum wages, a grievance of lesser Gratuity can be maintenable from the perspective of beneficial interpretation. The counter plea of the overall validity of the accepted wage structure in existence can not be questioned for a particular benefit flowing out of the same structure has also some equal force. Therefore, in my opinion, the magnanimity reinforced by the spirit of gratuitous concession as well as avoidance of unnecessary litigation found in the practice suggested by you deserves praise.
SGMC
Dear Dinesh
An establishment is liable to pay Gratuity under the PG Act on the last salary drawn by an employee.
If the last salary drawn is consolidated one then you are liable to pay gratuity on the consolidated salary.
If the last salary drawn includes the wage components Basic, DA + other allowance then you have to pay gratuity on Basic + DA
Regards
P S Lakshmanan
S.G. Management Services
Kolkata
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute