Hi, Gratuity limit has been increased from 3.5L to 10L and the same is full tax exempted. But the circular is awaited still. RK Sinha
From India, Ludhiana
From India, Ludhiana
Can anybody Guide to me, about how to do the calculation of Grauity payment? Regards Madhura.
From India
12From India
Hi,
Payment of Gratuity Act, 1972
Object: It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, and shops or other establishments.
Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.
Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.
Calculation:
(Last Wage drawn i.e., basic + DA) x 15
-------------------------------------------------------------------------------------------------------
26 x number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as full year)
Maximum Limit: Rs.3.5 lacs. (w.e.f 24-09-1997), the same has been extended upto Rs. 10L
Time Limit for application to employer: Employee has to make an application in Form-I to his employer within 30 days from the date of gratuity becomes payable.
Gratuity Act Ammendment India 2010 (Gratuity Calculation and Payment). This is good news for all employees specially government employees. The Gratuity limit has been raised from 3.5 lacs to 10 lacs. This will give advantage to both private and public sector employees. According to this new ammendment the 10 lacs on gratuity is Tax-free.
You can calculate your gratuity online over this link.
Calculate Gratuity
From India, Ludhiana
Payment of Gratuity Act, 1972
Object: It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, and shops or other establishments.
Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.
Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.
Calculation:
(Last Wage drawn i.e., basic + DA) x 15
-------------------------------------------------------------------------------------------------------
26 x number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as full year)
Maximum Limit: Rs.3.5 lacs. (w.e.f 24-09-1997), the same has been extended upto Rs. 10L
Time Limit for application to employer: Employee has to make an application in Form-I to his employer within 30 days from the date of gratuity becomes payable.
Gratuity Act Ammendment India 2010 (Gratuity Calculation and Payment). This is good news for all employees specially government employees. The Gratuity limit has been raised from 3.5 lacs to 10 lacs. This will give advantage to both private and public sector employees. According to this new ammendment the 10 lacs on gratuity is Tax-free.
You can calculate your gratuity online over this link.
Calculate Gratuity
From India, Ludhiana
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