Dear All,
please help me regarding :
1.Who is eligible for gratuity ?
2 Maximum limit of gratuity.
3 How to calculate gratuity.
4 Forms of gratuity.
5 In death case what is the procedure to calculate gratuity.
From India, Delhi
2please help me regarding :
1.Who is eligible for gratuity ?
2 Maximum limit of gratuity.
3 How to calculate gratuity.
4 Forms of gratuity.
5 In death case what is the procedure to calculate gratuity.
From India, Delhi
Dear Satish,
The reply to your queries in seriatim as as follows:-
1. Section 4 of the Payment of Gratuity Act,1972 (hereinafter shall be called as Act) provides that an employee shall be eligible for gratuity on termination of his employment after he has rendered continuously service for not less than five years, but a five years period shall not be necessary where the termination of employment of any employee is due to death or disablement due to accident or disease.
2.The maximum limit of gratuity is Rs.10 lakhs which has been revised from the earliar limit of Rs. 3.5 Lakhs.
3.The fifteen days wages shall be calculated by dividing the monthly rates of wages last drawn by him by twenty six and multiplying the quotient by fifteen.The resultant value will be multiply by no. of continuously service one has put in.
4 Various forms have been prescribed under the Payment of Gratuity Rules, which may vary from state to state as such you have to consult the rules of particular state.
5. In case of death,you have to contact the nominee as recorded in the service record of the deceased or in case there no nomination is recorded, the legal heir of the deceased shall be eligible for payment of gratuity in an application is made to the employer but best course of action would be to approach the Controlling Authority under the Act, who is empowered th decide such matters.
BS Kalsi
Member since Aug 2011
From India, Mumbai
The reply to your queries in seriatim as as follows:-
1. Section 4 of the Payment of Gratuity Act,1972 (hereinafter shall be called as Act) provides that an employee shall be eligible for gratuity on termination of his employment after he has rendered continuously service for not less than five years, but a five years period shall not be necessary where the termination of employment of any employee is due to death or disablement due to accident or disease.
2.The maximum limit of gratuity is Rs.10 lakhs which has been revised from the earliar limit of Rs. 3.5 Lakhs.
3.The fifteen days wages shall be calculated by dividing the monthly rates of wages last drawn by him by twenty six and multiplying the quotient by fifteen.The resultant value will be multiply by no. of continuously service one has put in.
4 Various forms have been prescribed under the Payment of Gratuity Rules, which may vary from state to state as such you have to consult the rules of particular state.
5. In case of death,you have to contact the nominee as recorded in the service record of the deceased or in case there no nomination is recorded, the legal heir of the deceased shall be eligible for payment of gratuity in an application is made to the employer but best course of action would be to approach the Controlling Authority under the Act, who is empowered th decide such matters.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt