For Central PSU executives the following was the order :
"In pursuance of the Presidential Directives issued by Ministry of Commerce & Industry, Govt. of India, vide order No. 11/9/2009-FT(M&O) dated 27th April, 2009, "
whereby ,
9. Gratuity & Leave Encashment :
9.1 Subject to other terms and conditions in vogue from time to time, ceiling on payment of gratuity stands revised from Rs. 3.50 lakhs to Rs.10 lakhs for those executives who have retired on or after 01/01/2007 or who will retire in future.
9.2 For Executives including those who have retired and have availed gratuity/leave encashment on or after 1.1.2007 till the date of issuance of this office order will be eligible for payment of arrears on account of gratuity/leave encashment taking the revised salary into consideration.
9.3 Executives who have ceased to be in the services of the Company on or after 1st January 2007 due to superannuation, death, voluntary retirement and valid resignation will be eligible for arrears of pay & allowances, in terms of this office order on a pro rata basis, wherever due. In the event of death of the beneficiary, payment of arrears shall be subject to submission of a written request from the Nominee(s).
______
In my openion, same gratuity norms are provided for Central Govt. Employees from for whom the order came into effect from 1.1.2006 where as the effective date is 1.1.2007 for PSU executives.
As someone mentioned above, even I feel there is no upper limit for gratuity for private sector but the Income Tax exemption is for Rs. 3.5 lakhs as of now but a proposal has been sent for increasing this exemption to 10 lakhs.
From India, Madras
"In pursuance of the Presidential Directives issued by Ministry of Commerce & Industry, Govt. of India, vide order No. 11/9/2009-FT(M&O) dated 27th April, 2009, "
whereby ,
9. Gratuity & Leave Encashment :
9.1 Subject to other terms and conditions in vogue from time to time, ceiling on payment of gratuity stands revised from Rs. 3.50 lakhs to Rs.10 lakhs for those executives who have retired on or after 01/01/2007 or who will retire in future.
9.2 For Executives including those who have retired and have availed gratuity/leave encashment on or after 1.1.2007 till the date of issuance of this office order will be eligible for payment of arrears on account of gratuity/leave encashment taking the revised salary into consideration.
9.3 Executives who have ceased to be in the services of the Company on or after 1st January 2007 due to superannuation, death, voluntary retirement and valid resignation will be eligible for arrears of pay & allowances, in terms of this office order on a pro rata basis, wherever due. In the event of death of the beneficiary, payment of arrears shall be subject to submission of a written request from the Nominee(s).
______
In my openion, same gratuity norms are provided for Central Govt. Employees from for whom the order came into effect from 1.1.2006 where as the effective date is 1.1.2007 for PSU executives.
As someone mentioned above, even I feel there is no upper limit for gratuity for private sector but the Income Tax exemption is for Rs. 3.5 lakhs as of now but a proposal has been sent for increasing this exemption to 10 lakhs.
From India, Madras
Hello Mr.KM Rao, As per my understandings the formula for gratuity is last drawn basic salary*15/26*no of years of continuous service. Pl correct me if i am wrong Regards, Jai
From India, Hyderabad
1From India, Hyderabad
THE PAYMENT OF GRATUITY ACT-1972
1. When is gratuity applicable to an employee?
Ans: Gratuity is applicable to a permanent employee who completes 5 years of continuous service with the organisation.
2. What is the maximum Gratuity payable to an employee?
Ans: Maximum Gratuity payable to an employee is Three Lakhs Fifty Thousand only.
3. When is an employee eligible for getting gratuity?
Ans: Employee has to complete continuous service of 5 years, but after the ruling of Madras High Court if there are 240 working days in the 5th year even then an employee is eligible for the gratuity.
4. What if an employee completes 4 years & 6 months of service, is he eligible for Gratuity?
Ans: No, but where an employee has completed 4 years & 240 days of continuous service in the 5th year he is eligible for the Gratuity.
5. What if an employee before completing 5 years of continues service expires, is he eligible for Gratuity?
Ans: In case the employee expires before completing 5 years and gratuity could be paid to the nominee of the deceased employee provided the employee has completed a year of service.
6. Is retrenched employee entitled to gratuity?
Ans: Yes, a retrenched employee is also entitled to gratuity.
From India, Pune
1. When is gratuity applicable to an employee?
Ans: Gratuity is applicable to a permanent employee who completes 5 years of continuous service with the organisation.
2. What is the maximum Gratuity payable to an employee?
Ans: Maximum Gratuity payable to an employee is Three Lakhs Fifty Thousand only.
3. When is an employee eligible for getting gratuity?
Ans: Employee has to complete continuous service of 5 years, but after the ruling of Madras High Court if there are 240 working days in the 5th year even then an employee is eligible for the gratuity.
4. What if an employee completes 4 years & 6 months of service, is he eligible for Gratuity?
Ans: No, but where an employee has completed 4 years & 240 days of continuous service in the 5th year he is eligible for the Gratuity.
5. What if an employee before completing 5 years of continues service expires, is he eligible for Gratuity?
Ans: In case the employee expires before completing 5 years and gratuity could be paid to the nominee of the deceased employee provided the employee has completed a year of service.
6. Is retrenched employee entitled to gratuity?
Ans: Yes, a retrenched employee is also entitled to gratuity.
From India, Pune
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