Process of gratuity turst & what are the documents required.
From India, Ghaziabad
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1From India, Ghaziabad
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No document required for submission Dear please fillup form-F by employees after complete 1 year, If need more details then read payment of gratuity act 1972 and rules 1972.
From India, Kolkata
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From India, Kolkata
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Thank you for your reply, but the Gratuity Act of 1972 only pertains to the payment of gratuity. To my knowledge, we are required to register our company for a gratuity trust and open an account with LIC. The calculation of the gratuity fund will need to be based on actuarial valuation. I am not familiar with the entire process. Please let me know if you need further clarification or assistance.
Thank you.
From India, Ghaziabad
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Thank you.
From India, Ghaziabad
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Mr. Abhijit is correct. Under the Gratuity Act, payment is mandatory only. Other processes are not essential, as it is the sole decision of the employer whether the company wants to save the gratuity amount from the beginning or not. In case the company wants to save the money from the beginning and doesn't want to go for a sudden one-time liability, it has the option to invest that amount in the name of the employee. Various public and private insurance companies are in the market for this facility. Yes, in my opinion, the investment of the gratuity amount is a better option, and it comes with additional HR liability.
Regards
From India, Delhi
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Regards
From India, Delhi
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I agree with Shweta. You may prepare a policy on gratuity and establish a trust or purchase a policy from LIC or other insurance companies in the market. This will help in managing the funds and administration more effectively, reducing the risks involved.
From India, Hyderabad
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From India, Hyderabad
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Hi Abhijit, Thanks for your reply, but the Gratuity Act 1972 only covers the payment of gratuity. As per my knowledge, we need to register our company for a gratuity trust and open an account with LIC. The calculation of the gratuity fund will be based on actuarial valuation. I have no idea of the full process.
It is also true that some companies are adopting a group insurance scheme from LIC India, through which they pay an annual return in the financial year after maturity from the registered company, then claim gratuity from LIC, which pays this amount on a monthly basis.
This is the format for claiming:
Ref: Per / Claim Gratuity / Date: 19.07.2012
Advance Discharge Receipt-cum-CLAIMS (GRATUITY) STATEMENT under Policy No-GGCA-311765... FOR THE MONTH OF Dec-2011 to July 2012...
(A) Received a sum of rupees (RS 631426) in full & final settlement from LIC OF India in respect of the following claims:
S.NO. Name with latest designation Retirement/Resignation Last Drawn Salary p.m. DATE OF APPTT(X) DATE OF LEAVING(Y) No. of service's Years(Y-X) Amount of Gratuity payable DATE OF BIRTH S.No. in the LIC date as per 1 below Reasons for non-compliance with ( ) below
1 Kamal Kr. Gukani Resignation 10900 01.12.2003 01.06.2012 9 56596 03.04.1971 67
2 Devender Kumar Resignation 5000 02.12.2007 10.05.2012 5 14423 10.01.1983 76
TOTAL 71019
For any clarification, please contact Mr. [Phone Number Removed For Privacy Reasons] or e-mail: [Email Removed For Privacy Reasons]
Issue a cheque favoring The Trustees, [full name of Gratuity Trust] and dispatch at [complete postal address] PINCODE: 121006
© Last contribution Rs... was paid on... The latest data for ARD (annual renewal date)... was submitted on... This claim statement is being sent to LIC by hand/courier/ordinary/registered post on...
Dated at... on this... Day of... 20
Across one Rupee Revenue stamp
WITNESS: Signature of the Trustee/Authorized signatory only with Office stamp with Name, Designation & address Signature: Designation: Address:
Regards
From India, Faridabad
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It is also true that some companies are adopting a group insurance scheme from LIC India, through which they pay an annual return in the financial year after maturity from the registered company, then claim gratuity from LIC, which pays this amount on a monthly basis.
This is the format for claiming:
Ref: Per / Claim Gratuity / Date: 19.07.2012
Advance Discharge Receipt-cum-CLAIMS (GRATUITY) STATEMENT under Policy No-GGCA-311765... FOR THE MONTH OF Dec-2011 to July 2012...
(A) Received a sum of rupees (RS 631426) in full & final settlement from LIC OF India in respect of the following claims:
S.NO. Name with latest designation Retirement/Resignation Last Drawn Salary p.m. DATE OF APPTT(X) DATE OF LEAVING(Y) No. of service's Years(Y-X) Amount of Gratuity payable DATE OF BIRTH S.No. in the LIC date as per 1 below Reasons for non-compliance with ( ) below
1 Kamal Kr. Gukani Resignation 10900 01.12.2003 01.06.2012 9 56596 03.04.1971 67
2 Devender Kumar Resignation 5000 02.12.2007 10.05.2012 5 14423 10.01.1983 76
TOTAL 71019
For any clarification, please contact Mr. [Phone Number Removed For Privacy Reasons] or e-mail: [Email Removed For Privacy Reasons]
Issue a cheque favoring The Trustees, [full name of Gratuity Trust] and dispatch at [complete postal address] PINCODE: 121006
© Last contribution Rs... was paid on... The latest data for ARD (annual renewal date)... was submitted on... This claim statement is being sent to LIC by hand/courier/ordinary/registered post on...
Dated at... on this... Day of... 20
Across one Rupee Revenue stamp
WITNESS: Signature of the Trustee/Authorized signatory only with Office stamp with Name, Designation & address Signature: Designation: Address:
Regards
From India, Faridabad
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I am afraid there may be some confusion regarding gratuity, EPF Trust, group insurance, etc. These are all different concepts. Presently, we will deal only with the subject of 'gratuity.' Other subjects can be discussed separately when needed.
For gratuity, there is no trust like EPF. It is to be paid by the employer from their own funds. However, the employer has the option to obtain a gratuity policy from an insurance company. The law does not require gratuity to be paid solely from the employer's own funds nor does it prohibit payment by an insurance company. The law is only concerned with the payment of gratuity to an employee who has rendered a minimum of five years of service. The condition of a minimum five-year service is not applicable if the employee dies or is permanently injured and rendered incapable of discharging their duties for the rest of their life. In such cases, irrespective of the length of service being below five years, gratuity is payable on humanitarian grounds. There is no provision to recover gratuity from the employees' salary and return it to them upon termination of service. It is to be paid from the employer's own funds or through an insurance policy held by the employer at their own cost. Such gratuity policies are different from group insurance policies for employees. New HR executives may contact the national insurance company to get more details about their gratuity policies. Small firms that fall under the Payment of Gratuity Act, 1972, may consider such policies where the insurance company assumes responsibility for the payment of gratuity to the expired/retired/resigned employee or their legal heirs. However, only the employer, and not the insurance company, is ultimately responsible for the payment of gratuity to the expired/retired/resigned employees.
From India, Pune
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For gratuity, there is no trust like EPF. It is to be paid by the employer from their own funds. However, the employer has the option to obtain a gratuity policy from an insurance company. The law does not require gratuity to be paid solely from the employer's own funds nor does it prohibit payment by an insurance company. The law is only concerned with the payment of gratuity to an employee who has rendered a minimum of five years of service. The condition of a minimum five-year service is not applicable if the employee dies or is permanently injured and rendered incapable of discharging their duties for the rest of their life. In such cases, irrespective of the length of service being below five years, gratuity is payable on humanitarian grounds. There is no provision to recover gratuity from the employees' salary and return it to them upon termination of service. It is to be paid from the employer's own funds or through an insurance policy held by the employer at their own cost. Such gratuity policies are different from group insurance policies for employees. New HR executives may contact the national insurance company to get more details about their gratuity policies. Small firms that fall under the Payment of Gratuity Act, 1972, may consider such policies where the insurance company assumes responsibility for the payment of gratuity to the expired/retired/resigned employee or their legal heirs. However, only the employer, and not the insurance company, is ultimately responsible for the payment of gratuity to the expired/retired/resigned employees.
From India, Pune
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Hello there,
I have a confusion regarding gratuity. As I leave the company after 7 years of service and asked the accounts to provide the exact amount of gratuity, they are saying that they will need to look into all the records from the beginning to calculate the gratuity. As far as I know, the amount should be calculated based on the last basic salary, but they are saying that it will be calculated based on each year's individual basic salary. Please provide me with the details as soon as possible.
Thank you.
From India, Delhi
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I have a confusion regarding gratuity. As I leave the company after 7 years of service and asked the accounts to provide the exact amount of gratuity, they are saying that they will need to look into all the records from the beginning to calculate the gratuity. As far as I know, the amount should be calculated based on the last basic salary, but they are saying that it will be calculated based on each year's individual basic salary. Please provide me with the details as soon as possible.
Thank you.
From India, Delhi
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Gratuity Act-Teachers-Ma dhya Pradesh.docx