Hi, sailu
Applicable
Every factory (as defined in the Factories Act), mine, oilfield, plantation, port, and railway.
Every shop or establishment to which the Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year-end.
Any establishment employing 10 or more persons as may be notified by the Central Government.
Once the Act applies, it continues to apply even if employment strength falls below 10.
Eligibility
Any person employed on wages/salary. At the time of retirement, resignation, or on superannuation, an employee should have rendered continuous service of not less than five years. In the case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
Benefits
The quantum of gratuity is to be computed at the rate of 15 days' wages (7 days' wages in the case of seasonal establishments) based on the rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months. The total amount of gratuity payable shall not exceed the prescribed limit. In cases where a higher benefit of gratuity is available under any gratuity scheme of the company, the employee will be entitled to the higher benefit.
Calculation of Gratuity:
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service.
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
Penal Provisions
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or a fine up to Rs 20,000/-. Other contraventions/offenses attract imprisonment up to 1 year and/or a fine up to Rs 10,000.
Regards, shaktiraj
From India, Mumbai
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Applicable
Every factory (as defined in the Factories Act), mine, oilfield, plantation, port, and railway.
Every shop or establishment to which the Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year-end.
Any establishment employing 10 or more persons as may be notified by the Central Government.
Once the Act applies, it continues to apply even if employment strength falls below 10.
Eligibility
Any person employed on wages/salary. At the time of retirement, resignation, or on superannuation, an employee should have rendered continuous service of not less than five years. In the case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
Benefits
The quantum of gratuity is to be computed at the rate of 15 days' wages (7 days' wages in the case of seasonal establishments) based on the rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months. The total amount of gratuity payable shall not exceed the prescribed limit. In cases where a higher benefit of gratuity is available under any gratuity scheme of the company, the employee will be entitled to the higher benefit.
Calculation of Gratuity:
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service.
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
Penal Provisions
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or a fine up to Rs 20,000/-. Other contraventions/offenses attract imprisonment up to 1 year and/or a fine up to Rs 10,000.
Regards, shaktiraj
From India, Mumbai
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Hi Sailu, Please herewith find the attached file of gratuity calculation. Warmest Regards, Mohan.M.S
From India, Madras
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28From India, Madras
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Dear All, I would like to clarify Calculation of Gratuity it is Gratuity = BASIC SALARY /26 * 15 * NO OF COMPLETED YEARS OF SERVICES. DABAS
From India, Delhi
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From India, Delhi
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Hay Gratuity = basic Salary/26 x 15 days x No. of service years Max. Gratuity payable is Rs. 3,50,000/-
From India, Indore
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From India, Indore
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Hi MohanMS,
I appreciate your efforts in preparing the Gratuity PPT. In slide No. 06, there should be a slight change in point No. 02. When an employee is in their 5th year and completes 240 days, the employee is not entitled to gratuity. Once the employee completes 5 years and 240 days, they are entitled to 6 years of gratuity.
Regards,
Nimish Joshi
9969526325
From India, Mumbai
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I appreciate your efforts in preparing the Gratuity PPT. In slide No. 06, there should be a slight change in point No. 02. When an employee is in their 5th year and completes 240 days, the employee is not entitled to gratuity. Once the employee completes 5 years and 240 days, they are entitled to 6 years of gratuity.
Regards,
Nimish Joshi
9969526325
From India, Mumbai
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Dear friend, Now I came across a typical issue, That is one of my employee left the services short of 3 dyas to complete 5 years (18.11.03 to 15.11.08).Does he eligible for gratuity. Please advise
From India, Tiruppur
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From India, Tiruppur
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Gratuity Calculation is simple
(Basic Salary + DA )/26 x 15 x No. of Years in service.
Point to Note:
if Service less than 5 ½ and service completed for 5 years than Gratuity will be applicable for 5 years.
Less than 5 years – Gratuity not applicable.
Anuz
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(Basic Salary + DA )/26 x 15 x No. of Years in service.
- DA is optional, if applicable
- 26 = No. of work days in a month
- 15 = 15 days
- No. of years in Service, usually its 5 years but also depends upon co. policy.
Point to Note:
- Gratuity is Applicable after completion of five (5) years in service.
- If any employee :
if Service less than 5 ½ and service completed for 5 years than Gratuity will be applicable for 5 years.
Less than 5 years – Gratuity not applicable.
Anuz
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Employee Benefits.doc
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F