Dear Seniors, Whether The Gratuity Is Applicable For Senior Citizens aged more than 58 years .Recently our organisation has re-appoint one employee (aged 60 years) after his retirement .
From India, Dharamsala
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5From India, Dharamsala
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Superannuation and Reappointment
The age of superannuation is not yet determined by any law. Retirement upon attaining the age of superannuation is the only service condition mentioned in the Standing Orders or Service Regulations of the establishment and is fixed thereto. Attaining the age of superannuation does not entail automatic retirement from service; the employer has to effect it. If a person of 60 years of age has been reappointed, it means that he was already in the service of the establishment, either yours or elsewhere, got retired at the age of 58 years or so, and then he has been employed afresh.
Eligibility for Gratuity
Eligibility for gratuity under the Payment of Gratuity Act, 1972, is based on the factors of length of continuous service under the same employer and the mode of termination of employment. Except for death, all other modes of termination do not curtail re-employment of the same person. Therefore, irrespective of the age as well as earlier settlement of gratuity in the same establishment or elsewhere, a person reappointed is entitled to gratuity in his second or subsequent tenure also if he completes the minimum qualifying service.
Regards
From India, Salem
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The age of superannuation is not yet determined by any law. Retirement upon attaining the age of superannuation is the only service condition mentioned in the Standing Orders or Service Regulations of the establishment and is fixed thereto. Attaining the age of superannuation does not entail automatic retirement from service; the employer has to effect it. If a person of 60 years of age has been reappointed, it means that he was already in the service of the establishment, either yours or elsewhere, got retired at the age of 58 years or so, and then he has been employed afresh.
Eligibility for Gratuity
Eligibility for gratuity under the Payment of Gratuity Act, 1972, is based on the factors of length of continuous service under the same employer and the mode of termination of employment. Except for death, all other modes of termination do not curtail re-employment of the same person. Therefore, irrespective of the age as well as earlier settlement of gratuity in the same establishment or elsewhere, a person reappointed is entitled to gratuity in his second or subsequent tenure also if he completes the minimum qualifying service.
Regards
From India, Salem
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A person above the age of 60 years is entitled to gratuity. Gratuity is to be calculated based on the length of his service and not his age.
Check www.labourlawhub.com for more information.
From India, Kolkata
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Check www.labourlawhub.com for more information.
From India, Kolkata
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Greetings!
An employee is eligible for gratuity once he/she completes 5 years (4 years 10 months and 11 days) of continuous service in an organization. It has nothing to do with age.
Hope it helps.
Regards,
From India, Delhi
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An employee is eligible for gratuity once he/she completes 5 years (4 years 10 months and 11 days) of continuous service in an organization. It has nothing to do with age.
Hope it helps.
Regards,
From India, Delhi
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There is no age restriction in payment of gratuity. The only criteria he should work for 5 years of service again.
From India, Hyderabad
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From India, Hyderabad
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There are a lot of views on the minimum of 5 years of service to become eligible for Gratuity. Please let me know if, as stated by Kanika Kapoor, 4 years 10 months and 11 days is deemed as 5 years of service. Is there any notification on this issue?
From India, Bangalore
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From India, Bangalore
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There is no age limit in Gratuity Act. One should be an employed person and should complete 5 years of service for eligibility of payment gratuity.
From India, Hyderabad
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From India, Hyderabad
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(Fact Checked)-The user reply is correct. The Payment of Gratuity Act does not specify any age limit for receiving gratuity. Eligibility is based on completing 5 years of continuous service. (1 Acknowledge point)
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Dear sir I have a query related to gratuity. Can an employee Drawing basic salary 100000 is eligible for gratuity ?
From India, Hyderabad
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From India, Hyderabad
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Eligibility for gratuity is not linked to the quantum of salary drawn by an employee. However, if the last-drawn salary comprises basic salary and various allowances, only basic and dearness allowance have to be taken together for the purpose of computation of the concerned employee's gratuity on the termination of his employment. If the salary is a consolidated one, then the entire amount has to be taken into account.
A cap on gratuity is provided in respect of the total amount payable. Regardless of the sum total of basic + D.A., the maximum amount of gratuity would be limited to the ceiling prescribed under section 4(3) of the Payment of Gratuity Act, 1972, which is Rs. 10 lakh at present.
From India, Salem
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A cap on gratuity is provided in respect of the total amount payable. Regardless of the sum total of basic + D.A., the maximum amount of gratuity would be limited to the ceiling prescribed under section 4(3) of the Payment of Gratuity Act, 1972, which is Rs. 10 lakh at present.
From India, Salem
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(Fact Checked)-The user's reply is correct regarding the computation of gratuity based on basic salary and dearness allowance, with a cap of Rs. 10 lakh as per the Payment of Gratuity Act, 1972. (1 Acknowledge point)
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As rightly pointed out above, even if an employee draws Rs.1,00,000/- per month as basic he will be entitled to gratuity provided that other conditions are fulfilled.
From India, Kolkata
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From India, Kolkata
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Is there is any age restriction in payment of gratuity and if employee-aged-more-than-60-years is entitled for gratuity after rendering five years continuous service
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Das,
There is a statutory restriction on the age of entry into any paid employment but no mandate on the age of exit. Gratuity is an employment benefit particularly entitling an employee upon the termination of their employment after a spell of minimum qualifying service under the same employer. If the age of retirement on superannuation is prescribed under the contract of employment or service regulations applicable, that should normally be followed. There can be an extension of the services of an employee for some more time out of necessity, subject to the willingness of both the employer and the employee concerned, in which case the extended service should also be taken into account for the purpose of computation of gratuity. Therefore, the age of the employee on the date of termination of their employment cannot be a factor in the matter of gratuity.
From India, Salem
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There is a statutory restriction on the age of entry into any paid employment but no mandate on the age of exit. Gratuity is an employment benefit particularly entitling an employee upon the termination of their employment after a spell of minimum qualifying service under the same employer. If the age of retirement on superannuation is prescribed under the contract of employment or service regulations applicable, that should normally be followed. There can be an extension of the services of an employee for some more time out of necessity, subject to the willingness of both the employer and the employee concerned, in which case the extended service should also be taken into account for the purpose of computation of gratuity. Therefore, the age of the employee on the date of termination of their employment cannot be a factor in the matter of gratuity.
From India, Salem
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(Fact Checked)-[response] Gratuity is applicable regardless of age at termination. Extension of service should factor into gratuity calculation. Age at termination does not affect gratuity entitlement. (1 Acknowledge point)
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(Fact Checked)-The user's reply is correct based on the Payment of Gratuity Act, 1972. Re-employment after retirement does not affect eligibility for gratuity if the minimum qualifying service is completed. (1 Acknowledge point)