Can every employee who has a 5 year experience eligible for Gratuity? Can a company has policies that they would not pay gratuity? Can a company pay gratuity if it does not allow PF in its clause
From India, Chandigarh
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From India, Chandigarh
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yes,if its continuos..... and if employee is on the roll of company he is eligble for graduty
From India, Delhi
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From India, Delhi
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emplyee will entitle to gget gratuity aftr cmpltion of cntinuesu 5 yr ashjsh delhi 7838606486
From India, New Delhi
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7From India, New Delhi
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if company didnt clear the dues of any employee company will not pay graduity in this case
From India, Delhi
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From India, Delhi
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The question itself is confusing. The person who has completed continuous service of 5 years is eligible for gratuity, not just 5 years of experience. Experience can be with more than one employer. Furthermore, you cannot make a policy that does not pay gratuity. You have to obey the Act and Rules.
From India, Pune
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From India, Pune
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I mean to say "The person who has completed continues service of 5 years in one establishment, is eligible for Gratuity, and not 5 years experience. Experience can be with more than one employee.
From India, Pune
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From India, Pune
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As per the court rulings, if a person works continuously for 4 years and 240 days, he is entitled to gratuity. A company's policy cannot be against the provisions of statutes, and hence, it is not possible for companies to have a policy against the provisions of payment of gratuity.
PF and Gratuity are totally different and governed by separate statutes, namely the Payment of Gratuity Act, 1972, and the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The only similarity is that both are social security legislations.
Regards,
Kalyan R
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From India, Madras
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PF and Gratuity are totally different and governed by separate statutes, namely the Payment of Gratuity Act, 1972, and the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The only similarity is that both are social security legislations.
Regards,
Kalyan R
[Phone Number Removed For Privacy Reasons]
From India, Madras
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Every employee who has completed continuous service of 5 years in an organization becomes eligible for gratuity payment from that organization. As per the Shops and Establishments Act, every employee who has continuous service of 1 year and less than 5 years becomes eligible for service compensation. The calculation basis is the same in both cases. The law benefits the employee rather than the employer. The law supersedes any organization's policy. Policies must align with or exceed the respective Acts but cannot override them.
Regards,
JMK
From India, Hyderabad
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Regards,
JMK
From India, Hyderabad
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The Payment of Gratuity Act, 1972
The Payment of Gratuity Act, 1972 applies to factories and other establishments employing ten or more persons. On completion of five years of service, employees are entitled to payment of gratuity at the rate of 15 days' wages for every completed year of service or part thereof in excess of six months, subject to a maximum of Rs. 10 lakh. The current maximum limit has been applicable since September 24, 1997. The wage ceiling for coverage under the Act was removed effective from May 24, 1994.
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From India, Pune
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The Payment of Gratuity Act, 1972 applies to factories and other establishments employing ten or more persons. On completion of five years of service, employees are entitled to payment of gratuity at the rate of 15 days' wages for every completed year of service or part thereof in excess of six months, subject to a maximum of Rs. 10 lakh. The current maximum limit has been applicable since September 24, 1997. The wage ceiling for coverage under the Act was removed effective from May 24, 1994.
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From India, Pune
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Eligibility for Gratuity Based on Employment Duration
If an employee has worked for 5 years in the same company, from the date of joining until the present date, they are eligible for gratuity. However, if the employee has worked in multiple companies during the same 5-year period, they are not eligible for gratuity from their current company.
Thank you.
From India, Bangalore
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If an employee has worked for 5 years in the same company, from the date of joining until the present date, they are eligible for gratuity. However, if the employee has worked in multiple companies during the same 5-year period, they are not eligible for gratuity from their current company.
Thank you.
From India, Bangalore
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anyone who has completed 5 years of continuous service in a company is entitled to get gratuity on his resignation or retirement
From India, Madras
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From India, Madras
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Payment of Gratuity Act, 1972
• Principle
– By faithful service over a long period, the employee is entitled to claim a certain amount as a retirement benefit.
– Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire at any other age, or upon resignation, and in the event of your death or being rendered disabled because of an accident or illness. You need to have at least 5 full years of service with an employer to qualify for gratuity.
• Rate of Gratuity
• Gratuity =
• Every completed year of service * 15 days' wages
• 15 days' wages = (based on last salary drawn)
• {(Monthly Basic + DA) / 26} * 15 days
• Maximum gratuity
• Shall not exceed Rs. 3,50,000 as per the Act & it is not taxable
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From India, Bangalore
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• Principle
– By faithful service over a long period, the employee is entitled to claim a certain amount as a retirement benefit.
– Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire at any other age, or upon resignation, and in the event of your death or being rendered disabled because of an accident or illness. You need to have at least 5 full years of service with an employer to qualify for gratuity.
• Rate of Gratuity
• Gratuity =
• Every completed year of service * 15 days' wages
• 15 days' wages = (based on last salary drawn)
• {(Monthly Basic + DA) / 26} * 15 days
• Maximum gratuity
• Shall not exceed Rs. 3,50,000 as per the Act & it is not taxable
Regards
From India, Bangalore
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Amendment to Gratuity Act
There has been an amendment to the act which states that the gratuity limit has been enhanced from 3.5 lakhs to Rs. 10 lakhs, effective May 24, 2010, as per the Payment of Gratuity (Amendment) Act, 2010. I will go through this amendment to be more certain of the applicability and will post the updates ASAP.
Regards,
JMK
From India, Hyderabad
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There has been an amendment to the act which states that the gratuity limit has been enhanced from 3.5 lakhs to Rs. 10 lakhs, effective May 24, 2010, as per the Payment of Gratuity (Amendment) Act, 2010. I will go through this amendment to be more certain of the applicability and will post the updates ASAP.
Regards,
JMK
From India, Hyderabad
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As per my knowledge, if an employee is on the company's payroll and continuously works for 4 years and 240 days in the same organization, then they are entitled to gratuity. The company can settle all dues from the employee's gratuity amount. However, the company cannot deduct any amount from the employee's PF amount (as per section 10(d) of the PF Act).
Thank you.
From India, Calcutta
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Thank you.
From India, Calcutta
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Is there any formula to calculate monthly Gratuity for the fund reservation. Regards Rajesh
From India, Surat
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From India, Surat
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If an employee serves for 5 years continuously in the same organization, they are eligible for gratuity. It is not applicable if the employee has 5 years or more of experience in various organizations; they will not be eligible for gratuity. There must be a continuous minimum of 5 years of service in the same organization for the employee to be eligible for gratuity.
From United States, Columbus
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From United States, Columbus
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If any employee who is on the rolls of the company completes 5 years of continuous service, they will be eligible for Gratuity. The formula for calculating gratuity is as follows: Last drawn Basic * No. of years of service * 15/26. The maximum eligibility issue has also been recently revised.
Regards,
KSK
From India, Hyderabad
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Regards,
KSK
From India, Hyderabad
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Payment of Gratuity Act, 1972
As per the Payment of Gratuity Act, 1972, the payment of gratuity is compulsory for the management of factories, plantations, mines, oil fields, railways, shops, and other establishments employing 10 or more persons. Gratuity is payable to all employees who render a minimum continuous service of five years with their present employer.
From India, Lucknow
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As per the Payment of Gratuity Act, 1972, the payment of gratuity is compulsory for the management of factories, plantations, mines, oil fields, railways, shops, and other establishments employing 10 or more persons. Gratuity is payable to all employees who render a minimum continuous service of five years with their present employer.
From India, Lucknow
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[QUOTE=Minkysharma;1685485]
Dear Minky, your queries are replied to as follows:
1. Eligibility for Gratuity
Five years of continuous service in the company without a gap is required for gratuity, i.e., 240 working days in a year.
2. Company Policy on Gratuity
Gratuity is a statutory payment and it can't be avoided based on company policy.
3. Gratuity and PF
Gratuity and PF are separate enactments.
Regards,
From India, New Delhi
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Dear Minky, your queries are replied to as follows:
1. Eligibility for Gratuity
Five years of continuous service in the company without a gap is required for gratuity, i.e., 240 working days in a year.
2. Company Policy on Gratuity
Gratuity is a statutory payment and it can't be avoided based on company policy.
3. Gratuity and PF
Gratuity and PF are separate enactments.
Regards,
From India, New Delhi
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Gratuity Eligibility and Calculation
As per the provisions of the Gratuity Act of 1972, those who complete 5 years are entitled to gratuity. The gratuity amount will be calculated as follows: Last Drawn Basic & Dearness Allowance × 15/26 × Number of completed years of service.
If a person puts in more than 240 days of service in the fifth year, they are entitled to gratuity as per the guidelines laid down in the "Mettur Beardsell" case by the Madras High Court. Please refer to the 1998 LLR 1072 for the above case law.
Regards,
Kalyan R
[Phone Number Removed For Privacy Reasons]
From India, Madras
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As per the provisions of the Gratuity Act of 1972, those who complete 5 years are entitled to gratuity. The gratuity amount will be calculated as follows: Last Drawn Basic & Dearness Allowance × 15/26 × Number of completed years of service.
If a person puts in more than 240 days of service in the fifth year, they are entitled to gratuity as per the guidelines laid down in the "Mettur Beardsell" case by the Madras High Court. Please refer to the 1998 LLR 1072 for the above case law.
Regards,
Kalyan R
[Phone Number Removed For Privacy Reasons]
From India, Madras
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