Dear Sir/Madam,
As per my knowledge, an employee can take their maximum Gratuity amount of Rs. 3.5 Lakhs. However, I recently heard that an employee who has completed at least 5 years consistently in his/her service can take a maximum amount of Rs. 10 Lakhs. My question is, what exactly is the maximum amount that an employee can take from his/her Gratuity amount?
Thank you.
From India, Gandhidham
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As per my knowledge, an employee can take their maximum Gratuity amount of Rs. 3.5 Lakhs. However, I recently heard that an employee who has completed at least 5 years consistently in his/her service can take a maximum amount of Rs. 10 Lakhs. My question is, what exactly is the maximum amount that an employee can take from his/her Gratuity amount?
Thank you.
From India, Gandhidham
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The maximum gratuity has been increased from Rs 3.5 lakhs to 10 lakhs in 2010. The amount of gratuity is equal to 15 days pay for every completed year of service. Regards, Madhu.T.K
From India, Kannur
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4526From India, Kannur
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The gratuity amount has been increased from Rs.3.5 lakhs to 10 lakhs from 2010. Calculation of gratuity amount is = basic+DA (last pay drawn) /26x15 days x total number of years worked
From India, Madras
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From India, Madras
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As the ceiling of gratuity has been raised from ₹3.5 lakh to ₹10 lakh, the eligibility criteria is 5 years of continuous service.
Thanks & Regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons]
From India, Ghaziabad
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Thanks & Regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons]
From India, Ghaziabad
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Hi friends, as questioned by Mr. Kaushik above, what the Gratuity Act say if someone expires before completing the mandatory five years of service?
From India, Ludhiana
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From India, Ludhiana
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Dear Member,
In the case of the death of an employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such a minor shall be deposited with the controlling authority. The controlling authority shall invest the same for the benefit of such minor in a bank or other financial institution, as prescribed, until the minor attains majority. For more details, please refer to section 4 of the Payment of Gratuity Act, 1972.
Thank you,
R.N.KHOLA
(Labour Law Consultants)
From India, Delhi
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In the case of the death of an employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such a minor shall be deposited with the controlling authority. The controlling authority shall invest the same for the benefit of such minor in a bank or other financial institution, as prescribed, until the minor attains majority. For more details, please refer to section 4 of the Payment of Gratuity Act, 1972.
Thank you,
R.N.KHOLA
(Labour Law Consultants)
From India, Delhi
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Gratuity Ceiling Update
The maximum gratuity ceiling of Rs. 3.5 lakh has been increased to Rs. 10 lakhs in 2010. Please find herewith the related GO for your use.
Regards,
Yagniah K
Manager - HR
Sri Chakra Cement Limited, Hyderabad
[Phone Number Removed For Privacy Reasons]
From India, Hyderabad
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The maximum gratuity ceiling of Rs. 3.5 lakh has been increased to Rs. 10 lakhs in 2010. Please find herewith the related GO for your use.
Regards,
Yagniah K
Manager - HR
Sri Chakra Cement Limited, Hyderabad
[Phone Number Removed For Privacy Reasons]
From India, Hyderabad
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Mr. Kausik,
The gratuity eligibility for a death case is one year. If he has completed one year, you have to pay the gratuity to his nominee up to his retirement age, i.e., 58. You have to calculate gratuity for the remaining years and the amount to be paid to his nominee. Hence, most companies will attach this gratuity with LIC and pay the premium amount to LIC so that LIC will pay his nominee.
Regards,
Alphonse
9443625359
From India, Madras
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The gratuity eligibility for a death case is one year. If he has completed one year, you have to pay the gratuity to his nominee up to his retirement age, i.e., 58. You have to calculate gratuity for the remaining years and the amount to be paid to his nominee. Hence, most companies will attach this gratuity with LIC and pay the premium amount to LIC so that LIC will pay his nominee.
Regards,
Alphonse
9443625359
From India, Madras
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I have a question on the payment of gratuity. What happens in the case of the death of an employee who has just completed two years of service, and his salary is $10,000 at the time of his death? What will be the amount of gratuity payable to his nominee? How will the calculation happen in this case?
Regards,
Vishal Setia
From India, Faridabad
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Regards,
Vishal Setia
From India, Faridabad
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Dear Vishal,
Members have already provided the calculation formula, which is as follows:
Basic + DA (last pay drawn) / 26 x 15 days x total number of years worked.
In this case, the amount comes out to be Rs. 11,538/-. For more details, please refer to section 4 of this Act.
R.N.KHOLA
Labour Law Consultants
From India, Delhi
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Members have already provided the calculation formula, which is as follows:
Basic + DA (last pay drawn) / 26 x 15 days x total number of years worked.
In this case, the amount comes out to be Rs. 11,538/-. For more details, please refer to section 4 of this Act.
R.N.KHOLA
Labour Law Consultants
From India, Delhi
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Dear CiteHR Members,
Please give some suggestions for my problem.
Mahesh
Hyderabad
My name is Mahesh. I have worked as a plumber for the last 20 years in one organization, and now at the age of 40, there is no ESI and PF. In February 2011, during my working hours, I slipped and fell down, fracturing my hand. As a result, I was absent for one day as I was unable to go to the office due to the pain in my hand.
Upon my absence, they immediately terminated me and appointed another plumber in my place. They asked me to resign from the job, and I complied. Can I receive any benefits from them for my 20 years of service? The organization is registered under the A.P. Shops and Establishment Act, but they are not maintaining proper records.
Please help me. I am very thankful.
Thank you.
From India, Hyderabad
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Please give some suggestions for my problem.
Mahesh
Hyderabad
My name is Mahesh. I have worked as a plumber for the last 20 years in one organization, and now at the age of 40, there is no ESI and PF. In February 2011, during my working hours, I slipped and fell down, fracturing my hand. As a result, I was absent for one day as I was unable to go to the office due to the pain in my hand.
Upon my absence, they immediately terminated me and appointed another plumber in my place. They asked me to resign from the job, and I complied. Can I receive any benefits from them for my 20 years of service? The organization is registered under the A.P. Shops and Establishment Act, but they are not maintaining proper records.
Please help me. I am very thankful.
Thank you.
From India, Hyderabad
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I am working in a software company, and in the monthly payslip, only the Basic amount shows along with other allowances like TA, HRA, & Special Allowance except DA. My question is when calculating Gratuity after 5 years without DA, I would have received a lesser amount. So please advise me in this regard, and is there any act where without DA salary can be paid. I expect good advice from you all.
Best regards,
A S RAO.
From India, Hyderabad
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Best regards,
A S RAO.
From India, Hyderabad
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Answers to the queries are as follows:
1. The maximum limit to earn gratuity is Rs. 10 lakhs.
2. In the event of death before completing 5 years, gratuity needs to be paid only for the number of years completed in service.
Regards,
Arvind
From India, Pune
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1. The maximum limit to earn gratuity is Rs. 10 lakhs.
2. In the event of death before completing 5 years, gratuity needs to be paid only for the number of years completed in service.
Regards,
Arvind
From India, Pune
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if a person is not completed one year. He has worked in a company for only 10days and he dies whether we have to pay him the gratuity amount. regards Padmaja
From India, Madras
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From India, Madras
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Dear Padmaja,
In the Gratuity Act, the minimum eligibility criteria of 5 years is not applicable in the case of an employee's death. All other conditions remain the same. Therefore, any employee who has worked for less than 6 months will not receive any gratuity as per the Act. In the case of employees who have worked for more than six months and then pass away, they are eligible for gratuity as per the Act.
Regards,
SC
From India, Thane
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In the Gratuity Act, the minimum eligibility criteria of 5 years is not applicable in the case of an employee's death. All other conditions remain the same. Therefore, any employee who has worked for less than 6 months will not receive any gratuity as per the Act. In the case of employees who have worked for more than six months and then pass away, they are eligible for gratuity as per the Act.
Regards,
SC
From India, Thane
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Gratuity Payment Guidelines
Gratuity payment has the following points to remember:
• 5 years of service in the normal course.
• Maximum gratuity amount is Rs. 10 Lakh.
• In case of death while in service, the condition of a minimum of 5 continuous years of service does not apply.
• The recipient of gratuity is required to submit an application in the prescribed form to the employer requesting payment of gratuity.
• The employee must submit a nomination to the employer.
• Deductions from gratuity can be made if an employee is found guilty of causing losses to the organization (as specified under the law).
Regards,
Arvind Kulkarni
From India, Pune
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Gratuity payment has the following points to remember:
• 5 years of service in the normal course.
• Maximum gratuity amount is Rs. 10 Lakh.
• In case of death while in service, the condition of a minimum of 5 continuous years of service does not apply.
• The recipient of gratuity is required to submit an application in the prescribed form to the employer requesting payment of gratuity.
• The employee must submit a nomination to the employer.
• Deductions from gratuity can be made if an employee is found guilty of causing losses to the organization (as specified under the law).
Regards,
Arvind Kulkarni
From India, Pune
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt