HELLO ALL SENIORS, Respected all I want to ask that For the payment of gratuity amount Is the gratuity insurance necessary? And what steps I need to take? Regards Naresh
From India, Pune
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4From India, Pune
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No, there is no requirement to join any insurance company for the Gratuity Scheme. However, if your employer wants to take tax benefits on provision, then you need to enroll with an insurance company.
Only LIC has a limitation to enroll new clients up to 31-08-2013 as per the notification by IRDA on 16-08-2013. For new clients after that date, Gratuity schemes will be closed for enrollment. Please confirm the same from your side.
Thank you,
Regards,
Ashish
From India, Pune
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Only LIC has a limitation to enroll new clients up to 31-08-2013 as per the notification by IRDA on 16-08-2013. For new clients after that date, Gratuity schemes will be closed for enrollment. Please confirm the same from your side.
Thank you,
Regards,
Ashish
From India, Pune
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Dear Professional, could you please clarify my doubt regarding Gratuity Paid? One of our employees has been working for the past 6 years and recently passed away. Kindly confirm how to proceed with making the gratuity payment.
Thanks,
Chakrapani D
From India, Bangalore
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Thanks,
Chakrapani D
From India, Bangalore
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Gratuity Payment in Case of Death
The Payment of Gratuity Act 1972 provides that in the event of death, the gratuity is payable to any of the following persons:
• Nominee
• Heirs (in the absence of a nomination)
In case the nominee or heir is a minor, the amount will be deposited with the Controlling Authority of the area. The authority shall invest the amount for the benefit of the minor in a bank or other financial institution, as prescribed, until the minor attains majority. You can advise the nominee (normally the wife of the deceased) to approach the management of the company.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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The Payment of Gratuity Act 1972 provides that in the event of death, the gratuity is payable to any of the following persons:
• Nominee
• Heirs (in the absence of a nomination)
In case the nominee or heir is a minor, the amount will be deposited with the Controlling Authority of the area. The authority shall invest the amount for the benefit of the minor in a bank or other financial institution, as prescribed, until the minor attains majority. You can advise the nominee (normally the wife of the deceased) to approach the management of the company.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Dear Naresh, What type of details do you need regarding the Payment of Gratuity Act 1972? It is a complex subject. For any clarification, you can contact me at [Phone Number Removed For Privacy Reasons].
Questions on Gratuity Act Requirements
Actually, I want to know:
1. Is any registration necessary for the employer under the Payment of Gratuity Act 1972?
2. Does the employer need to take any insurance for gratuity payment to the employee, such as Gratuity Insurance, etc.?
Regards,
Naresh
From India, Pune
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Questions on Gratuity Act Requirements
Actually, I want to know:
1. Is any registration necessary for the employer under the Payment of Gratuity Act 1972?
2. Does the employer need to take any insurance for gratuity payment to the employee, such as Gratuity Insurance, etc.?
Regards,
Naresh
From India, Pune
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My reply to your queries is as follows:
1) Registration Under the Payment of Gratuity Act 1972
No registration is required for an employer under the Payment of Gratuity Act 1972. However, you are required to send a 'Notice of Opening' of your establishment as prescribed under the state rules to the Controlling Authority of the area. Any further changes, if any, in the particulars of the establishment shall be intimated. A record of nominations in respect of all employees who have completed one year of service shall be maintained.
2) Gratuity Payment Insurance Requirement
No insurance is required for the gratuity payment to the employee.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
Acknowledge(1)Amend(0)
1) Registration Under the Payment of Gratuity Act 1972
No registration is required for an employer under the Payment of Gratuity Act 1972. However, you are required to send a 'Notice of Opening' of your establishment as prescribed under the state rules to the Controlling Authority of the area. Any further changes, if any, in the particulars of the establishment shall be intimated. A record of nominations in respect of all employees who have completed one year of service shall be maintained.
2) Gratuity Payment Insurance Requirement
No insurance is required for the gratuity payment to the employee.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc