Request if somebody can inform if Gratuity is compulsory for IT industry or not.
From India, Coimbatore
From India, Coimbatore
Dear Friend, It should be covered. But minimum applicabelit start when the employee completed his/her Five years of service. Regards, PBS KUMAR
From India, Kakinada
590From India, Kakinada
Hello, Its should be there according to act just like that PF and ESI. Because its all for employee benfits. Regards Shanti
From India, Delhi
From India, Delhi
Hi Shanti, These acts are for employee benefits and give them more privilege. All acts are appliable where 20 or more employees are working. Regards John
From India, Delhi
From India, Delhi
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.ph...uity&submit=Go
From India, Coimbatore
https://www.citehr.com/search_new.ph...uity&submit=Go
From India, Coimbatore
Hi, As per law one is entiltled for gratutiy when he complete 5 years of sevice if PF & ESI is covered. uma
From India, Madras
From India, Madras
Hi,
Its a statutory obligation of an employer to his employee. Eventhough its paid out only if the employee parts ways after 5 continuous years of service, a liability will have to be captured in your book of accounts as per actuarial calculation.
Shoba
From India, Bangalore
Its a statutory obligation of an employer to his employee. Eventhough its paid out only if the employee parts ways after 5 continuous years of service, a liability will have to be captured in your book of accounts as per actuarial calculation.
Shoba
From India, Bangalore
Dear All,
As per the scope of the Gratuity Act - 1972, every factory and Shop or establishment employing 10 person shall be covered under the Act.
As for as IT companies are concerned, these are covered under shop and establishment Act of concerned state and normally employing 10 employees shall be covered under the Gratuity Act.
The payment of gratuity is governed by the act as one has rendered 5 years completed years of service shall be eligible for payment of gratuity.
and it will be calculated as,
15 days average (divided by 26) last drawn basic wages (Basic+DA) for every completed year of service.
Gratuity = [{(Basic+DA)/26}*15] * completed years of service.
Hope it will clarify the subject matter.
further you can write for more particular case.
Mohd. Arif Khan
As per the scope of the Gratuity Act - 1972, every factory and Shop or establishment employing 10 person shall be covered under the Act.
As for as IT companies are concerned, these are covered under shop and establishment Act of concerned state and normally employing 10 employees shall be covered under the Gratuity Act.
The payment of gratuity is governed by the act as one has rendered 5 years completed years of service shall be eligible for payment of gratuity.
and it will be calculated as,
15 days average (divided by 26) last drawn basic wages (Basic+DA) for every completed year of service.
Gratuity = [{(Basic+DA)/26}*15] * completed years of service.
Hope it will clarify the subject matter.
further you can write for more particular case.
Mohd. Arif Khan
Hi,
Most of our colleagues have written about the Gratuity Act applicable to industries and shops & establishments in India. This act has a limit of a maximum amount that can be paid. Earler it was Rs 3,50,000.- The limit may have been raised.
Most multinationals do not pay gratuity. They offer something similar called superannuation or severance which offers one months salary for each year of completed service. Income tax is applicable as per law.
Cheerio
Rashmi
From India, Gurgaon
Most of our colleagues have written about the Gratuity Act applicable to industries and shops & establishments in India. This act has a limit of a maximum amount that can be paid. Earler it was Rs 3,50,000.- The limit may have been raised.
Most multinationals do not pay gratuity. They offer something similar called superannuation or severance which offers one months salary for each year of completed service. Income tax is applicable as per law.
Cheerio
Rashmi
From India, Gurgaon
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
Gratuity Form I.doc