Dear Friends,
I would like to respond the queriest in my way.
The queriest asked a question, is there any provision like this in Gratuity Act i.e. paying 4.85% by employer on basic salary of every employee towards a gratuity fund for every month?
There is no such provision in Gratuity Act. There is a provision in Gratuity Act that the employer is liable to pay gratuity to employee who leaves on completion of 5 years of continuous service at the rate 15 days for every year completed.
When you pay gratuity at the rate 15 days for every year completed, the costing of this comes to 4.85% of basic.
It is very unfortunate that HR professionals have no grip over the subject matter they handle. I am very sorry to say it.