Dear Sir, Can you please let me know the rules of Gratuity act (death case) Thanks in advance Regards, Ramoji
From India, Hyderabad
From India, Hyderabad
Dear Ramoji,
under section (4) in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
From India, Hyderabad
under section (4) in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
From India, Hyderabad
hi
legally yes. gratuity is not payable. however if death is due to natural causes, if you
could convince your management, you could calculate 15/26 x every completed year of service.
it all depends on how you value your employee's service to the organization. you can always
justify it as special circumstances and not to be taken as a precedent.
From India, Madras
legally yes. gratuity is not payable. however if death is due to natural causes, if you
could convince your management, you could calculate 15/26 x every completed year of service.
it all depends on how you value your employee's service to the organization. you can always
justify it as special circumstances and not to be taken as a precedent.
From India, Madras
In the event of natural death, the Gratuity is to be paid for the said number of years the employee worked.
E.g. if employee worked only for 6 months plus - he or she should be paid the Gratuity for ONE YEAR. Basic+DA x 15 days / 26 days is the calculation.
Here the Grtuity Act 5 years completion of service does not apply.
Gratuity Eligibility - 5 Years+ service is applicable only to employees who are in continuous service. This is different.
Natural dealth of an employee for which Gratuity to be paid is completely difference.
Please do not mix up both together.
Regards,
Sundararaman
From India, Madras
66E.g. if employee worked only for 6 months plus - he or she should be paid the Gratuity for ONE YEAR. Basic+DA x 15 days / 26 days is the calculation.
Here the Grtuity Act 5 years completion of service does not apply.
Gratuity Eligibility - 5 Years+ service is applicable only to employees who are in continuous service. This is different.
Natural dealth of an employee for which Gratuity to be paid is completely difference.
Please do not mix up both together.
Regards,
Sundararaman
From India, Madras
I would like to add one more point that if there is any Gratuity policy is taken through LIC or any insurance agency then in that case if death occurs while in service then Gratuity is calculated as if the deceased employee is served up to 58 years and gratuity is paid. For example if any employee at the age of 25 years joins the company and expires after working for two years then his/her legal heir will be paid gratuity for 33 years .
Regards,
Uday
From India, Mumbai
Regards,
Uday
From India, Mumbai
I would like to add one more point that in Gratuity calculation at the end of gratuity payment which Basic salary we suppose to count which is last basic or basic at the time of Joining?
Regards,
Hiren Jobanputra
From India, Ahmadabad
Regards,
Hiren Jobanputra
From India, Ahmadabad
Dear Hiren
Gratuity should be calculated on the basic at the time of leaving leaving the service but not on the basic at the time of joining and aslo please note that there is a ceiling on the gratuity amount payable to an employee as per the gratuity act.
As per the gratuity act the maximum gratuity amount payable is 3.5 lakhs. if company wants give more it will be very good and no act prevent the employer to do so and more over such amount is exempted under income tax also.
Regards
S.B.Rao[/QUOTE]
From India, Hyderabad
Gratuity should be calculated on the basic at the time of leaving leaving the service but not on the basic at the time of joining and aslo please note that there is a ceiling on the gratuity amount payable to an employee as per the gratuity act.
As per the gratuity act the maximum gratuity amount payable is 3.5 lakhs. if company wants give more it will be very good and no act prevent the employer to do so and more over such amount is exempted under income tax also.
Regards
S.B.Rao[/QUOTE]
From India, Hyderabad
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