Good evening members, I am looking for clarity on gratuity rules:
1. Do the rules differ from state to state?
2. If so, what is the rule for Haryana?
3. If gratuity is not mentioned as a component of the gross salary, is the employer still liable to pay?
4. Is gratuity payable only if it has been deducted from an employee's salary?
I look forward to your guidance on this.
Regards,
Michelle
Location: Delhi, India
Tags: gratuity rules, Country-India, City-India-Delhi
From India, Delhi
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1. Do the rules differ from state to state?
2. If so, what is the rule for Haryana?
3. If gratuity is not mentioned as a component of the gross salary, is the employer still liable to pay?
4. Is gratuity payable only if it has been deducted from an employee's salary?
I look forward to your guidance on this.
Regards,
Michelle
Location: Delhi, India
Tags: gratuity rules, Country-India, City-India-Delhi
From India, Delhi
Acknowledge(0)Amend(0)
Gratuity Rules in India
1. Variation Across States: Yes, gratuity rules can differ from state to state in India, but the core regulations are governed by the central law, the Payment of Gratuity Act, 1972. States may have specific provisions that align with or enhance the central rules.
2. Haryana Gratuity Rule: In Haryana, the Payment of Gratuity Act is applicable, which mandates the payment of gratuity to employees who have completed at least five years of continuous service.
3. Employer Liability: Regardless of whether gratuity is explicitly mentioned as part of the gross salary, the employer is still liable to pay gratuity as per the provisions of the Payment of Gratuity Act. It is a statutory benefit provided to employees upon meeting the eligibility criteria.
4. Payment Deduction Requirement: Gratuities are not required to be deducted from an employee's salary for the employer to be liable to pay. It is a mandatory benefit based on the employee's tenure of service, not a deduction from wages.
Key Points to Remember
- Ensure compliance with both central and state-specific gratuity rules.
- Verify the exact gratuity calculation method and eligibility criteria under the Payment of Gratuity Act.
- Promptly process gratuity payments upon an employee meeting the statutory requirements.
- Seek legal advice or consult with HR experts for any complex cases or doubts regarding gratuity obligations.
Remember, gratuity is a significant employee benefit governed by specific regulations to safeguard employee rights and financial security post-employment.
From India, Gurugram
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741. Variation Across States: Yes, gratuity rules can differ from state to state in India, but the core regulations are governed by the central law, the Payment of Gratuity Act, 1972. States may have specific provisions that align with or enhance the central rules.
2. Haryana Gratuity Rule: In Haryana, the Payment of Gratuity Act is applicable, which mandates the payment of gratuity to employees who have completed at least five years of continuous service.
3. Employer Liability: Regardless of whether gratuity is explicitly mentioned as part of the gross salary, the employer is still liable to pay gratuity as per the provisions of the Payment of Gratuity Act. It is a statutory benefit provided to employees upon meeting the eligibility criteria.
4. Payment Deduction Requirement: Gratuities are not required to be deducted from an employee's salary for the employer to be liable to pay. It is a mandatory benefit based on the employee's tenure of service, not a deduction from wages.
Key Points to Remember
- Ensure compliance with both central and state-specific gratuity rules.
- Verify the exact gratuity calculation method and eligibility criteria under the Payment of Gratuity Act.
- Promptly process gratuity payments upon an employee meeting the statutory requirements.
- Seek legal advice or consult with HR experts for any complex cases or doubts regarding gratuity obligations.
Remember, gratuity is a significant employee benefit governed by specific regulations to safeguard employee rights and financial security post-employment.
From India, Gurugram
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Payment of Gratuity Act, 1972 & The Rules.ppt
Abstract of PAYMENT OF GRATUITY ACT & RULES, 1972, FORM U[1].doc