What is the process for application of gratuity for an Employee?
From India, Guwahati
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From India, Guwahati
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Gratuity:
It is given to a person for long and meritorious service in any industry. Gratuity is payable even to an employee who resigns after completing at least 5 years of service.
Applicability:
Every factory, mine, oil field, plantation, port, railways, company, shop establishment, or educational institution employing ten or more persons.
Main Provisions
Gratuity Eligibility Criteria:
Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years. Thus, for an employee to become entitled to the payment of gratuity, he must have rendered continuous service of at least 5 years. The completion of continuous service of 5 years is not necessary where the termination of the employment of an employee is due to his death or disablement.
Wages for Calculation:
Gratuity is calculated at the rate of 15 days' wages for every completed year as if the month comprises 26 days at the last drawn wages.
Monthly Salary x 15 days x No. of yrs. of service / 26
Employee: All employees irrespective of status or salary.
Qualifying Period: On rendering of 5 years of service either on termination or on resignation or retirement.
Entitlement: On completion of 5 years of service except in the case of death or disablement.
Maximum Ceiling: Rs.3,50,000/-
When Gratuity is Not Paid:
- On termination of an employee for disorderly behavior.
- Wholly or partly for willfully causing loss or destruction of property, etc.
Penalties:
- Imprisonment for six months or a fine up to Rs.10,000 for avoiding payment by making false statements or representations.
- Imprisonment not less than 3 months and up to one year with a fine on default in complying with the provisions of the Act or rules.
For more reference, check the link below:
1. Payment Of Gratuity Act 1972
From India, Coimbatore
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20It is given to a person for long and meritorious service in any industry. Gratuity is payable even to an employee who resigns after completing at least 5 years of service.
Applicability:
Every factory, mine, oil field, plantation, port, railways, company, shop establishment, or educational institution employing ten or more persons.
Main Provisions
Gratuity Eligibility Criteria:
Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years. Thus, for an employee to become entitled to the payment of gratuity, he must have rendered continuous service of at least 5 years. The completion of continuous service of 5 years is not necessary where the termination of the employment of an employee is due to his death or disablement.
Wages for Calculation:
Gratuity is calculated at the rate of 15 days' wages for every completed year as if the month comprises 26 days at the last drawn wages.
Monthly Salary x 15 days x No. of yrs. of service / 26
Employee: All employees irrespective of status or salary.
Qualifying Period: On rendering of 5 years of service either on termination or on resignation or retirement.
Entitlement: On completion of 5 years of service except in the case of death or disablement.
Maximum Ceiling: Rs.3,50,000/-
When Gratuity is Not Paid:
- On termination of an employee for disorderly behavior.
- Wholly or partly for willfully causing loss or destruction of property, etc.
Penalties:
- Imprisonment for six months or a fine up to Rs.10,000 for avoiding payment by making false statements or representations.
- Imprisonment not less than 3 months and up to one year with a fine on default in complying with the provisions of the Act or rules.
For more reference, check the link below:
1. Payment Of Gratuity Act 1972
From India, Coimbatore
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An employee has to apply for gratuity in Form I. The amount is supposed to be paid to him before 30 days of his leaving service.
Let me also make a correction to the post by Amrita, that the maximum gratuity is not 3.5 Lakhs but it is Rs. 10 lakhs now.
Regards,
Madhu.T.K
From India, Kannur
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Let me also make a correction to the post by Amrita, that the maximum gratuity is not 3.5 Lakhs but it is Rs. 10 lakhs now.
Regards,
Madhu.T.K
From India, Kannur
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I like to know the format to apply for my gratuity, i worked for 5 years in the company and how to apply for it, and please can anybody help me in providing the format... Thanking You; dinesh
From India, Bangalore
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From India, Bangalore
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Please find the form I have attached. Kindly remember that you cannot apply for gratuity simply because you have completed five years of service with a company. Gratuity becomes due only when you leave the company after a minimum of five years of service.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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FORM I(Application for Gratuity by an employee).doc