Request if somebody can inform if Gratuity is compulsory for IT industry or not.
From India, Coimbatore
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From India, Coimbatore
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Dear Friend, It should be covered. But minimum applicabelit start when the employee completed his/her Five years of service. Regards, PBS KUMAR
From India, Kakinada
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592From India, Kakinada
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Hello, Its should be there according to act just like that PF and ESI. Because its all for employee benfits. Regards Shanti
From India, Delhi
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From India, Delhi
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Hi Shanti, These acts are for employee benefits and give them more privilege. All acts are appliable where 20 or more employees are working. Regards John
From India, Delhi
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From India, Delhi
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Hi, As per law one is entiltled for gratutiy when he complete 5 years of sevice if PF & ESI is covered. uma
From India, Madras
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From India, Madras
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Hi,
It's a statutory obligation of an employer to their employee. Even though it's paid out only if the employee parts ways after 5 continuous years of service, a liability will have to be captured in your book of accounts as per actuarial calculation.
Shoba
From India, Bangalore
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It's a statutory obligation of an employer to their employee. Even though it's paid out only if the employee parts ways after 5 continuous years of service, a liability will have to be captured in your book of accounts as per actuarial calculation.
Shoba
From India, Bangalore
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Dear All,
As per the scope of the Gratuity Act of 1972, every factory, shop, or establishment employing 10 persons shall be covered under the Act. Concerning IT companies, they are covered under the Shop and Establishment Act of the respective state, and typically, those employing 10 employees shall also be covered under the Gratuity Act.
The payment of gratuity is governed by the act. An individual who has completed five years of service shall be eligible for gratuity payment, calculated as follows: 15 days' average (divided by 26) of the last drawn basic wages (Basic+DA) for each completed year of service.
The gratuity amount can be calculated using the formula:
Gratuity = [{(Basic+DA)/26} * 15] * completed years of service.
I hope this clarifies the subject matter. For more specific cases, please do not hesitate to reach out.
Mohd. Arif Khan
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As per the scope of the Gratuity Act of 1972, every factory, shop, or establishment employing 10 persons shall be covered under the Act. Concerning IT companies, they are covered under the Shop and Establishment Act of the respective state, and typically, those employing 10 employees shall also be covered under the Gratuity Act.
The payment of gratuity is governed by the act. An individual who has completed five years of service shall be eligible for gratuity payment, calculated as follows: 15 days' average (divided by 26) of the last drawn basic wages (Basic+DA) for each completed year of service.
The gratuity amount can be calculated using the formula:
Gratuity = [{(Basic+DA)/26} * 15] * completed years of service.
I hope this clarifies the subject matter. For more specific cases, please do not hesitate to reach out.
Mohd. Arif Khan
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Hi,
Most of our colleagues have written about the Gratuity Act applicable to industries and shops & establishments in India. This act has a limit of a maximum amount that can be paid. Earlier it was Rs 3,50,000. The limit may have been raised.
Most multinationals do not pay gratuity. They offer something similar called superannuation or severance, which offers one month's salary for each year of completed service. Income tax is applicable as per law.
Cheerio,
Rashmi
From India, Gurgaon
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Most of our colleagues have written about the Gratuity Act applicable to industries and shops & establishments in India. This act has a limit of a maximum amount that can be paid. Earlier it was Rs 3,50,000. The limit may have been raised.
Most multinationals do not pay gratuity. They offer something similar called superannuation or severance, which offers one month's salary for each year of completed service. Income tax is applicable as per law.
Cheerio,
Rashmi
From India, Gurgaon
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Gratuity Act-Teachers-Ma dhya Pradesh.docx