Dear Seniors,
I am having a few doubts with respect to the payment of gratuity. One of my employees has completed 5 years of service, out of which he was onsite for 3 years. Now, I wanted to know if he is eligible for gratuity.
Kindly help me with this.
Awaiting your guidance.
Regards,
Sara
From India, Bangalore
Acknowledge(0)
Amend(0)
I am having a few doubts with respect to the payment of gratuity. One of my employees has completed 5 years of service, out of which he was onsite for 3 years. Now, I wanted to know if he is eligible for gratuity.
Kindly help me with this.
Awaiting your guidance.
Regards,
Sara
From India, Bangalore
Acknowledge(0)Amend(0)
I have a very important question. My uncle used to work for a pharma firm in Ahmedabad. He is illiterate, so he was not aware of any forms that the company filled up on his behalf, like ESI, PF, and all. Now, he has left the company after working for 15 long years, and he is not physically fit. When I jumped into the matter to know the exact thing that was delaying the PF withdrawal, I got the PF slip from the company, and it is showing his nickname instead of his registered name. Because of this reason, now I am unable to proceed ahead, and the name that his bank account has is different from the one shown in the PF record.
Can you please guide me on the exact procedure on how to take care of the whole issue? What is the procedure by which I can go to the PF office and change, or we can say correct, his name?
Thanks, Asia Sheikh
From India, Anklesvar
Acknowledge(0)Amend(0)
Can you please guide me on the exact procedure on how to take care of the whole issue? What is the procedure by which I can go to the PF office and change, or we can say correct, his name?
Thanks, Asia Sheikh
From India, Anklesvar
Acknowledge(0)Amend(0)
Hi Sara,
If the employee is on the rolls of the same company, and the company is paying for his duties onsite, that implies he has completed 5 years of service with the same company, making him eligible for gratuity benefits. It does not matter whether he worked indoors or on site; what matters is whether he worked for the same establishment/company and the same company paid him wages for all his services, which is crucial for calculating the service period.
Mohan Rao
Manager HR
From India, Visakhapatnam
Acknowledge(0)Amend(0)
24If the employee is on the rolls of the same company, and the company is paying for his duties onsite, that implies he has completed 5 years of service with the same company, making him eligible for gratuity benefits. It does not matter whether he worked indoors or on site; what matters is whether he worked for the same establishment/company and the same company paid him wages for all his services, which is crucial for calculating the service period.
Mohan Rao
Manager HR
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Hi Sara,
If the name and style of the organization are one, and the employer is one, and when the business is one, then the service is also one to be counted. Whatever you pay, you have to settle on the basis of his last paid salary, i.e., Basic and Plus DA if paid at the time of his settlement.
Mohan Rao
Manager HR
From India, Visakhapatnam
Acknowledge(0)Amend(0)
If the name and style of the organization are one, and the employer is one, and when the business is one, then the service is also one to be counted. Whatever you pay, you have to settle on the basis of his last paid salary, i.e., Basic and Plus DA if paid at the time of his settlement.
Mohan Rao
Manager HR
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Dear Sara, YES,He iS ELIGIBLE FOR GRATUITY because He has completed five years in the same organization
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear,
Please go through Section 4 of the Payment of Gratuity Act, 1972 for knowledge on the calculation of the gratuity amount.
With Regards,
R.N.Khola
From India, Delhi
Acknowledge(0)Amend(0)
Please go through Section 4 of the Payment of Gratuity Act, 1972 for knowledge on the calculation of the gratuity amount.
With Regards,
R.N.Khola
From India, Delhi
Acknowledge(0)Amend(0)
Things to remember:
Gratuity is paid for good service.
1. If an employee has completed 5 years of continuous service in an establishment, they are eligible for gratuity.
2. Entitlement: 15 days' salary for each completed year of service or part thereof.
Salary = Basic Salary + D.A.
3. As per the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated as follows:
Formula: Salary x number of completed years of service x 15/26
For example:
Salary = Rs. 5000 (Basic + D.A)
Period of service: 6 years, 6 months, 15 days
Completed years of service: 7 years
Gratuity = Rs. 5000 x 7 x 15/26
= Rs. 20,192/-
I hope the concepts have been clarified for you.
Thanks and regards,
Cell No. 9443328010
From India, Erode
Acknowledge(0)Amend(0)
Gratuity is paid for good service.
1. If an employee has completed 5 years of continuous service in an establishment, they are eligible for gratuity.
2. Entitlement: 15 days' salary for each completed year of service or part thereof.
Salary = Basic Salary + D.A.
3. As per the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated as follows:
Formula: Salary x number of completed years of service x 15/26
For example:
Salary = Rs. 5000 (Basic + D.A)
Period of service: 6 years, 6 months, 15 days
Completed years of service: 7 years
Gratuity = Rs. 5000 x 7 x 15/26
= Rs. 20,192/-
I hope the concepts have been clarified for you.
Thanks and regards,
Cell No. 9443328010
From India, Erode
Acknowledge(0)Amend(0)
Things to remember: Gratuity is paid for good gratitude.
1. If an employee has completed 5 years of continuous service in an establishment, they are eligible for Gratuity.
2. Entitlement - 15 days' salary for each completed year of service or part thereof. Salary = Basic Salary + D.A.
3. As per the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated as follows: Formula: Salary x number of completed years of service x 15/26
Say, for example: Salary = Rs. 5000 (Basic + D.A.) Period of service: 6 years 6 months 15 days Completed years of service: 7 years Gratuity = Rs. 5000 x 7 x 15/26 = Rs. 20,192/-
Hope the concepts have been clarified for you.
Thanks and regards, Cell No. 9443328010
Shesh Nath Singh
From India, Erode
Acknowledge(0)Amend(0)
1. If an employee has completed 5 years of continuous service in an establishment, they are eligible for Gratuity.
2. Entitlement - 15 days' salary for each completed year of service or part thereof. Salary = Basic Salary + D.A.
3. As per the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated as follows: Formula: Salary x number of completed years of service x 15/26
Say, for example: Salary = Rs. 5000 (Basic + D.A.) Period of service: 6 years 6 months 15 days Completed years of service: 7 years Gratuity = Rs. 5000 x 7 x 15/26 = Rs. 20,192/-
Hope the concepts have been clarified for you.
Thanks and regards, Cell No. 9443328010
Shesh Nath Singh
From India, Erode
Acknowledge(0)Amend(0)
Dear Sara,
If an employee has completed continuous service of 5 years, he is eligible for gratuity. It is irrelevant whether he has worked on-site or otherwise. The place of working is not important. Completion of 5 years of continuous service in one establishment/factory/organization/company is important. I think your doubts might have cleared now.
Please feel free to call in case you need any further clarification on my cell 9443328010.
Thanks and regards,
From India, Erode
Acknowledge(0)Amend(0)
If an employee has completed continuous service of 5 years, he is eligible for gratuity. It is irrelevant whether he has worked on-site or otherwise. The place of working is not important. Completion of 5 years of continuous service in one establishment/factory/organization/company is important. I think your doubts might have cleared now.
Please feel free to call in case you need any further clarification on my cell 9443328010.
Thanks and regards,
From India, Erode
Acknowledge(0)Amend(0)
Hi,
Check this policy i made it for my company.Hope it is usefull for you.
Employee Pension Scheme:-
Objective:-
Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial principles for ensuring long term financial sustenance.
Applicability of the Act:-
The Scheme on its introduction applied on compulsory basis to all the new members of Provident Fund and the existing members who were contributing to the Employees' Family Pension Scheme-1971.
Contribution:-
· No separate contribution is payable additionally by the member for the Pension Scheme benefits. Out of the Employer contribution of 12% towards provident fund, 8.33% is diverted to Pension Scheme and balance 3.67% will be in credit of employee’s name in Provident Fund account.
· If some employers are paying contribution on salary in excess of Rs. 6,500, the excess contribution will be credited to Provident Fund account and not to Pension Scheme.
· No separate administration charges or inspection charges are payable, as these are already paid along with Provident Fund contribution.
Benefits:-
Newly introduced Employees' Pension Scheme-95 provides for following benefit package:
1. Pension for life to the member, on superannuation/retirement and invalidation.
2. To the members of the family upon death of the member:
a. Pension to Widow/Widower for life or till re-marriage.
b. To children/orphan, two at a time additionally upto 25 years of age simultaneously with widow/widower pension.
c. Facility for payment of pension to nominee in the event of member who is unmarried or without any eligible family member to receive pension, and
d. Facility for payment of pension to dependent father/mother in the event the member dies leaving behind no eligible family members and no nomination by such deceased member exists.
3. Scheme Certificate to retain membership of the Scheme till attaining the age of 58 years.
Superannuation/retirement pension under the new scheme will be payable on fulfilling:-
a. Minimum 10 years eligible service and
b. Attaining age of 58 years.
On ceasing employment earlier than 58 years, pension may be availed of by a member at his option, before attaining the age of 58 years but not below 50 years. Such early pension will be subject to discounting factor. However, no such age restriction or eligibility requirement shall apply for pension entitlement on disablement or pension payable to the family members on death of the member. Membership with one contribution is enough in such cases.
Thanks & Regards
Sharen Garg
From India, Delhi
Acknowledge(0)Amend(0)
Check this policy i made it for my company.Hope it is usefull for you.
Employee Pension Scheme:-
Objective:-
Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial principles for ensuring long term financial sustenance.
Applicability of the Act:-
The Scheme on its introduction applied on compulsory basis to all the new members of Provident Fund and the existing members who were contributing to the Employees' Family Pension Scheme-1971.
Contribution:-
· No separate contribution is payable additionally by the member for the Pension Scheme benefits. Out of the Employer contribution of 12% towards provident fund, 8.33% is diverted to Pension Scheme and balance 3.67% will be in credit of employee’s name in Provident Fund account.
· If some employers are paying contribution on salary in excess of Rs. 6,500, the excess contribution will be credited to Provident Fund account and not to Pension Scheme.
· No separate administration charges or inspection charges are payable, as these are already paid along with Provident Fund contribution.
Benefits:-
Newly introduced Employees' Pension Scheme-95 provides for following benefit package:
1. Pension for life to the member, on superannuation/retirement and invalidation.
2. To the members of the family upon death of the member:
a. Pension to Widow/Widower for life or till re-marriage.
b. To children/orphan, two at a time additionally upto 25 years of age simultaneously with widow/widower pension.
c. Facility for payment of pension to nominee in the event of member who is unmarried or without any eligible family member to receive pension, and
d. Facility for payment of pension to dependent father/mother in the event the member dies leaving behind no eligible family members and no nomination by such deceased member exists.
3. Scheme Certificate to retain membership of the Scheme till attaining the age of 58 years.
Superannuation/retirement pension under the new scheme will be payable on fulfilling:-
a. Minimum 10 years eligible service and
b. Attaining age of 58 years.
On ceasing employment earlier than 58 years, pension may be availed of by a member at his option, before attaining the age of 58 years but not below 50 years. Such early pension will be subject to discounting factor. However, no such age restriction or eligibility requirement shall apply for pension entitlement on disablement or pension payable to the family members on death of the member. Membership with one contribution is enough in such cases.
Thanks & Regards
Sharen Garg
From India, Delhi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.