Hi All,

Can anyone please help me to understand the process of Gratuity registration from the employer's side? My company is new, and I need to initiate the process without any consultants' help.

Regards,
Gajraj Singh

From India, Mumbai
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There is no registration for gratuity, but it takes place automatically by operation of the Payment of Gratuity Act. The Act requires that an employee leaving the organization after serving the company for a continuous period of five years is to be paid gratuity. At the same time, in the case of death, the dependent of the deceased employee is to be paid gratuity for which the qualifying service of five years is not required. In order to know who is the dependent who is legally entitled to get gratuity, an employer is required to collect nominations in form F from all employees who have completed one year of service. In fact, with that, the process of the application of the Payment of Gratuity Act starts.

Gratuity is calculated on the amount of salary paid to the employee at the time of his leaving the company, and the amount of gratuity is equal to 15 days' salary for every completed year of service subject to a maximum of Rs 10 lakhs.

Regards, Madhu.T.K

From India, Kannur
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as per the gratuity act-1972, there is no registration for gratuity. but it is applicable after 5 year. calculation formula- current basic/26*15*years of service thanks & regards vikas sharma
From India, Delhi
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There is no requirement to get the registration for Gratuity, but some companies opt for the Gratuity Scheme of Insurance Companies like LIC. These insurance companies pay interest on the amount paid to them as Gratuity Premium. For this purpose, you are required to have an agreement with LIC. Provide the data like the name of employees, their age, their basic salary, nominees, etc. Insurance companies decide the premium amount based on the employee's basic salary.

Rajiv Singh

From India
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company has to fill a form A _ an intimation of applicability of Payment of Gratuity Act to the concern Controlling Authority
From India, Ahmadabad
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Dear Madhu Sir,

Thank you for the information. Could you please assist me by explaining the following:

Basic salary (at the time of leaving the job) Rs. 9600/-
Total period worked: 7 years

How much gratuity will I receive?

Please reply.

Thank you in advance.

Nisar
nisar5346@gmail.com


From India, Kolhapur
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  • CA
    CiteHR.AI
    (Fact Checked)-Gratuity calculation: 15 days of last drawn salary for each completed year of service, subject to a maximum of Rs 10 lakhs. For 7 years of service with Rs. 9600 basic salary, gratuity will be calculated accordingly. (1 Acknowledge point)
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  • Hi!

    You don't require registration. The best thing for you is to form a trust through LIC and get it administered by them. No hassles and the procedure is simple. The entire documentation of the trust is done by LIC. The service is at your doorstep. What you have to do is pay the premium based on the number of employees, Basic+DA, date of birth, etc., according to the actuarial calculations of LIC. Besides, it provides insurance coverage if any employees die. When an employee leaves or retires, communicate with LIC with details in their format, and you will receive the cheque within 2 weeks.

    For details, you can contact the LIC Regional Office at your place directly. The procedure is simple. For further clarification, you can get in touch with me.

    Regards,
    S. Nagasubramanian
    Senior Manager, Legal, PR & EOHS
    RSB TRANSMISSIONS (I) LTD, PUNE.
    Mobile: 9325006193
    Email: naga.subramanian@rsbglobal.com

    From India, Pune
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  • Company has to submit a Form - A [See Rule 3(1)] Notice of Opening for the applicability of Payment of Gratuity Act to the concerned Controlling Authority.

    Additionally, the following Abstracts & Notices need to be displayed on the company notice board in English & Vernacular language:

    1. Notice of Authorised Person under the Payment of Gratuity Act, 1972
    2. Abstract - Form U under the Payment of Gratuity Act, 1972

    Regards,
    Jeeva K.
    Hasini HR Services Pvt Ltd, Chennai.
    Contact Number: 9094403910.

    From India, Madras
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    (Fact Checked)-The user's reply contains accurate information regarding the process of Gratuity registration. However, displaying personal contact details like phone numbers publicly is not recommended for privacy and security reasons. (1 Acknowledge point)
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  • There is no provision for such registration. However, we need to understand both the point of view of the employee and the employer. From the employee's perspective, we know it is a long service award. But from the employer's standpoint, it is a contingent liability that needs to be paid to the employee in a crisis or at the end of the term. Generally, after completing 5 years from the inception of the business, it is a statutory obligation for the employer to make a provision for the Gratuity Fund, which they have to manage themselves by creating a trust or by approaching LIC of India. I am attaching the scheme issued and administered by LIC of India for further clarifications.
    Attached Files (Download Requires Membership)
    File Type: doc A - Group Gratuity offer letter 2010-11 (2).doc (134.5 KB, 3021 views)

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    Dear Vijaysinh,

    Welcome to CiteHR. Forms are provided by the Payment of Gratuity Rules; therefore, first see which State/Central Rules are applicable in your case and then go through those Rules to have formats as provided therein for your query.

    R.N.KHOLA


    From India, Delhi
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    Dear Shyamrao,

    Compulsion is for payment of gratuity, not for insurance at all. Gratuity insurance is a policy of the insurance business. They offer insurance policies to small employers based on the number of employees, their pay structure, etc., and collect premiums regularly. Whenever the gratuity becomes payable to any employee of the insured employer, the insurance company pays the gratuity (fulfills the gratuity liability of the said employer as required under the Payment of Gratuity Act, 1972) to the retired/parting employee or legal heirs of the deceased employee, as the case may be. It is the choice of the employer either to pay the gratuity from his own funds or through an insurance policy.

    From India, Pune
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    (Fact Checked)-The information provided in the user reply is correct. (1 Acknowledge point)
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  • Dear Shyamrao,

    Compulsion is for payment of gratuity, not for insurance at all. Gratuity insurance is a policy of the insurance business. They offer insurance policies to small employers based on the number of employees, their pay structure, etc., and collect premiums regularly. Whenever the gratuity becomes payable to any employee of the insured employer, the insurance company pays the gratuity (fulfills the gratuity liability of the said employer as required under the Payment of Gratuity Act, 1972) to the retired/parting employee or legal heirs of the deceased employee as the case may be. It is the choice of the employer either to pay the gratuity from his funds or through an insurance policy.

    From India, Pune
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    (Fact Checked)-[response] Gratuity insurance is not compulsory under the Payment of Gratuity Act, 1972. Employers have the choice to pay gratuity from their funds or via insurance. (1 Acknowledge point)
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  • Prabhat Agarwal Please let me know about the applicability of gratuity on the assistant teachers of private primary schools (recognised / unaided)
    From India, Mumbai
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    (Fact Checked)-The applicability of gratuity to assistant teachers in private primary schools is as per the Payment of Gratuity Act, 1972. Recognition or aid status is not a determining factor. (1 Acknowledge point)
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  • [QUOTE=bittu_agarwal;1483608]
    Prabhat Agarwal,
    Please let me know about the applicability of gratuity on the assistant teachers of private primary schools (recognised / unaided).

    Dear Shri Prabhat Ji,

    Earlier, the Honorable Supreme Court of India held that teachers, not being classified as workers as per the definition, were ineligible for gratuity under the Payment of Gratuity Act, 1972. Subsequently, this was amended by the parliament in 2009 to include teachers in the eligibility for gratuity. All teachers are now eligible for gratuity under the Payment of Gratuity Act, 1972, as amended. If you encounter any challenges in obtaining gratuity for a teacher, please contact me through this website.

    Thanks and regards,
    [Your Name]

    From India, Pune
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    (Fact Checked)-[The information provided in the user reply is correct regarding the eligibility of teachers for gratuity under the Payment of Gratuity Act, 1972, as amended in 2009 to include teachers in the definition of eligibility. No amendment needed. Thank you for sharing this valuable insight.] (1 Acknowledge point)
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  • Hi All,

    I am very glad that you all took the time to respond to my question regarding Gratuity Registration. I now understand the procedure, which I find simple and easy to comprehend. I appreciate all of your valuable replies.

    Thanks & Regards,
    Gajraj Singh

    From India, Mumbai
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    Hi Madhu, I am very much glad for you that you spare time on my question which I put up for Gratuity Registration. I completely understand the procedure and now feel it is simple and easy to understand. I admire all of you for your valuable reply.

    Thanks & Regards, Gajraj Singh

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    From India, Mumbai
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    Andhra Pradesh state govt notification on compulsory gratuity insurance attached herewith for your peruasal.... Ramakrishna 9703100700
    From India, Hyderabad
    Attached Files (Download Requires Membership)
    File Type: pdf AP Compulsory Gratuity Insurance Rule 2011- Notification.pdf (77.5 KB, 354 views)

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    Dear Sir,

    Please clarify the topic of Payments of Gratuity for me. I have been working in the same organization under the same director. Initially, I worked for 2 years in company X and then transferred to another company where I worked for 1.5 years. I then transferred back to the first company, making my total service 6 years. However, the present Factory management is refusing to make the payment, stating that I have not completed 5 years of service. I kindly request your guidance on how to receive the gratuity amount as the company management has withheld the said amount.

    1. Is there any rule and regulation regarding this situation, considering that the companies have the same owners but different names?

    I am looking forward to receiving valuable advice in my inbox. Your reply and suggestions are greatly appreciated.

    Thanks and regards,
    Vikram Singh

    From India, Surat
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    If you were transferred to different units as per the company's policy, then your service will be treated as uninterrupted, and you will be eligible for gratuity. On the other hand, instead of a transfer letter on each instance, if you were given appointment letters, you will not get gratuity easily. I have used the word 'easily' because you will have to prove that your transfers were for the benefit and interest of the different establishments of the same management and not as per your requests. If the company says that each time you were taken as a new employee, you have to defend by demanding your application for the job. It is very usual that no person is given a job without submitting at least an application for the job!

    Regards,
    Madhu.T.K

    From India, Kannur
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    Hi! Rs 9600 x 15/26 x 7 = Rs 38,769/- is the gratuity due to be paid as per the Act. Rgds S Nagasubramanian
    From India, Pune
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    Dear Ramakrishna, Thanks for the attachment. I think this is the first Govt. who have made these Rules. Regards, R.N.KHOLA
    From India, Delhi
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    Dear Sir, What is the process for the Fill the Graduatiy Form. Pl. give which form to be need as per Act. I M FROM GUJARAT Thanking You Vijaysinh Vaghela
    From India, Vadodara
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    Dear Sir,

    My query is that I have been working for 6 years in two different companies with the same owner situated in the same area. However, upon resigning, the company management is stating that I have not completed the gratuity period in the same company.

    So, my question is how can I release my payment? Is there any note or subsection under Gratuity that I can refer to the management?

    Please guide me.

    Vikram
    9624112380

    From India, Surat
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    Dear Vijaysinh Vaghela,

    The requirement of the form is to be decided by you. Please go through the Gujarat Payment of Gratuity Rules to understand the various forms.

    R.N.Khola


    From India, Delhi
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    Dear,

    Though there is no requirement for registration, for newly opening establishments when it will be entitled (i.e., when there will be 10 employees), the notice of opening is required to be sent to the authority in Form A within 30 days of the opening of the establishment.

    I hope that I am able to shed light on this query.

    MG Ph. 09831759772 Kolkata

    From India
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    (Fact Checked)-The user reply contains accurate information regarding the process of Gratuity registration for new establishments. No corrections needed. (1 Acknowledge point)
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  • Dear Sir, I want to know from my one employee basic & Gross salary is more then PF limit (6500) & he don’t want PF deduction. What can i do in this metter. pl. hepl me. From; VIJAYSINH VAGHELA
    From India, Vadodara
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    Dear Shri Vijaysinh Ji,

    If an employee with a salary exceeding Rs. 6500 wishes not to join the PF, he can do so. PF is not compulsory for those earning more than Rs. 6500. Please obtain a written request from him, place it in his personal file, and do not enroll him in PF. That is all you need to do in this case.

    From India, Pune
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    Dear Sir,

    I have just applied for ESIC sub-code for our new branch office. Now, I want to know how to make a challan. Is only one challan needed, or is a separate challan required for the sub-code? Please help me with this matter.

    Regards,
    VIJAYSINH

    From India, Vadodara
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    Dear Senior Member,

    I am working at ITCOL company, which is a three-year-old organization. I joined six months ago, and now the auditor is inquiring about the gratuity registration. The question is as follows:

    Registration for gratuity has not been obtained as required under The Payment of Gratuity (Central) Rules, 1972 under section 3 as reproduced below: Notice of opening, change, or closure of the establishment.- (1) Within thirty days of the rules becoming applicable to an establishment, a notice in Form A shall be submitted by the employer to the controlling authority of the area.

    So please tell me, is it mandatory to take registration? Secondly, if it is mandatory, what is the procedure for taking registration after three years?

    Regards, Amit

    From India, Delhi
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    (Fact Checked)-The user's reply contains accurate information regarding the requirement for gratuity registration under The Payment of Gratuity (Central) Rules, 1972. The registration is mandatory within thirty days of the rules becoming applicable to an establishment. (1 Acknowledge point)
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  • Dear Amit,
    After going through your query it is submitted that we are not to apply for any registration. We are required to submit Form ‘A’ to the area Controlling Authority under The Payment of Gratuity Act, 1972 within 30 days the Rules become applicable to the establishment. In your case your establishment has not submitted this intimation so far but this does not mean that if you failed to send the intimation in time i.e. 30 days then you should not rectify the irregularity & allow it to continue. Send the intimation immediately to avoid the continuance of offence. First decide your appropriate government & then send the intimation to the concerned Controlling Authority.


    [SIZE=1][B][COLOR=red][FONT=Verdana]R.N.KHOLA

    From India, Delhi
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    Is it compulsory to create a trust for this purpose............? or with out a Trust can we have this policy from LIC...
    From India, Calicut
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    (Fact Checked)-The user's reply contains correct information regarding the creation of a trust for managing Gratuity Fund or approaching LIC of India. No amendment needed. (1 Acknowledge point)
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