Dear All,
I have following query/confusion w.r.t. provisions/practices on "The Payment of Gratuity Act, 1972"
Is the ceiling of Rs. 3.50 lacs towards max. gratuity payable under the payment of Gratuity Act or max. amount exempted under the Income Tax Act?
Regards,
Gaurang Sheth
From India, Pune
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1I have following query/confusion w.r.t. provisions/practices on "The Payment of Gratuity Act, 1972"
Is the ceiling of Rs. 3.50 lacs towards max. gratuity payable under the payment of Gratuity Act or max. amount exempted under the Income Tax Act?
Regards,
Gaurang Sheth
From India, Pune
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Dear Mr. Gaurang, The amount of Rs. 3.50 lacs is the Max. eligibility for Gratuity as per Gratuity act. Regards, Santosh Iyer
From India, Pune
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From India, Pune
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Hello Mr. Iyer,
Thank you for your reply to my query. Does this mean that if at the time of resigning/retiring, 15 days salary X no. of yrs of service is more than 3.50 lacs, legally employee can not claim gratuity of above 3.50 lacs?
Regards,
Gaurang Sheth
From India, Pune
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Thank you for your reply to my query. Does this mean that if at the time of resigning/retiring, 15 days salary X no. of yrs of service is more than 3.50 lacs, legally employee can not claim gratuity of above 3.50 lacs?
Regards,
Gaurang Sheth
From India, Pune
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sir, Please give me revised notification for increase in payment of Gratuity from 3.5 to 10.00lac if any.
From India, Delhi
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From India, Delhi
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Dear,
The maximum gratuity limit is still Rs. 3.5 lacs. The matter is under process.
With Regards,
R.N.Khola
From India, Delhi
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The maximum gratuity limit is still Rs. 3.5 lacs. The matter is under process.
With Regards,
R.N.Khola
From India, Delhi
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1. What is the basic information required for the settlement of gratuity under the Payment of Gratuity Act, 1972?
2. An employee who has worked in any organization for 20 years or more, is it compulsory to check his/her all increment details i.e. annual increment/salary fixation which are recorded in the service book at the time of payment of gratuity due to retirement/resignation/death?
3. Any amount which has been contributed in excess towards the employer's share in the PF account due to wrong salary fixation/increment or any other reason, can this employer contribution amount be recoverable from the payable gratuity to the employee due to retirement/resignation/death?
Arun Saxena, M/s Nav Bharat, Delhi, 9911542883
From India, Lucknow
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2. An employee who has worked in any organization for 20 years or more, is it compulsory to check his/her all increment details i.e. annual increment/salary fixation which are recorded in the service book at the time of payment of gratuity due to retirement/resignation/death?
3. Any amount which has been contributed in excess towards the employer's share in the PF account due to wrong salary fixation/increment or any other reason, can this employer contribution amount be recoverable from the payable gratuity to the employee due to retirement/resignation/death?
Arun Saxena, M/s Nav Bharat, Delhi, 9911542883
From India, Lucknow
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Dear Saxena,
Gratuity is payable if an employee has completed continuous service of 5 years as per Section 2A of the Gratuity Act 1972.
For the calculation of gratuity, the present salary is taken into consideration using the following formula:
Monthly salary * 15 * Number of years of continuous service / 26
Thank you.
From India, Mumbai
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Gratuity is payable if an employee has completed continuous service of 5 years as per Section 2A of the Gratuity Act 1972.
For the calculation of gratuity, the present salary is taken into consideration using the following formula:
Monthly salary * 15 * Number of years of continuous service / 26
Thank you.
From India, Mumbai
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Date: 25/10/2010
Dear Sir,
I have not received an answer to my third question. Kindly review my third question again. My query is as follows:
1. Is any amount that has been contributed in excess towards the employer's share in the PF account, due to wrong salary fixation/increment or any other reason, recoverable from the payable gratuity to the employee upon retirement/resignation/death?
Arun Saxena
M/s Nav Bharat
Delhi, 9911542883
From India, Lucknow
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Dear Sir,
I have not received an answer to my third question. Kindly review my third question again. My query is as follows:
1. Is any amount that has been contributed in excess towards the employer's share in the PF account, due to wrong salary fixation/increment or any other reason, recoverable from the payable gratuity to the employee upon retirement/resignation/death?
Arun Saxena
M/s Nav Bharat
Delhi, 9911542883
From India, Lucknow
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Dear Mr. Saxena,
1) For the settlement of gratuity under the Payment of Gratuity Act, 1972, you need to ensure a minimum of 5 years of continuous service from the employee and calculate the gratuity based on their last drawn Basic Salary. Apply the formula to calculate the gratuity.
2) There is no need to check the employee's past increment records to compute the gratuity; only the last drawn Basic salary is sufficient.
3) Any excess contribution made in the PF account cannot be recovered from the gratuity amount because the controlling authorities for both acts are different and hence cannot be adjusted.
Regards,
Uday Raverkar
Dy. Manager-HR
RSIL-Indore
From India, Indore
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1) For the settlement of gratuity under the Payment of Gratuity Act, 1972, you need to ensure a minimum of 5 years of continuous service from the employee and calculate the gratuity based on their last drawn Basic Salary. Apply the formula to calculate the gratuity.
2) There is no need to check the employee's past increment records to compute the gratuity; only the last drawn Basic salary is sufficient.
3) Any excess contribution made in the PF account cannot be recovered from the gratuity amount because the controlling authorities for both acts are different and hence cannot be adjusted.
Regards,
Uday Raverkar
Dy. Manager-HR
RSIL-Indore
From India, Indore
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