Hi Minimum how many persons required, for applicable for payment of gratuity act,1972 Regards Murthy
From India, Hyderabad
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19From India, Hyderabad
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Dear Murthy,
According to the Payment of Gratuity Act, 1972, this Act applies to every factory, mine, oilfield, plantation, port, and railway company. It also applies to every shop or establishment within the meaning of any law currently in force regarding shops and establishments in a state where ten or more persons are employed or were employed on any day in the previous twelve months.
With Regards,
R.N.Khola
Hi, Murthy,
How many persons are required at a minimum for the Payment of Gratuity Act, 1972 to be applicable?
Regards,
Murthy
From India, Delhi
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According to the Payment of Gratuity Act, 1972, this Act applies to every factory, mine, oilfield, plantation, port, and railway company. It also applies to every shop or establishment within the meaning of any law currently in force regarding shops and establishments in a state where ten or more persons are employed or were employed on any day in the previous twelve months.
With Regards,
R.N.Khola
Hi, Murthy,
How many persons are required at a minimum for the Payment of Gratuity Act, 1972 to be applicable?
Regards,
Murthy
From India, Delhi
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Thank you to both Mr. Prashant and Mr. R.N. Khola for your assistance. I have one more clarification to seek:
DOJ = 14/01/2004
DOL = 04/01/2010
In January 2010:
- Basic Salary = 5724
- HRA = 2862
- LTA = 1250
- Medical Allowance = 1250
- Company Allowance = 3606
- Advance Bonus = 700
- Total Earnings = 15392
- PF = 687
- PT = 100
- Net Earnings = 14605
Given this scenario, how should we calculate the gratuity?
Regards,
Murthy
From India, Hyderabad
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DOJ = 14/01/2004
DOL = 04/01/2010
In January 2010:
- Basic Salary = 5724
- HRA = 2862
- LTA = 1250
- Medical Allowance = 1250
- Company Allowance = 3606
- Advance Bonus = 700
- Total Earnings = 15392
- PF = 687
- PT = 100
- Net Earnings = 14605
Given this scenario, how should we calculate the gratuity?
Regards,
Murthy
From India, Hyderabad
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Dear Murthy,
We are to make payment of gratuity to this employee in accordance with Section 4 of the Payment of Gratuity Act, 1972 for consideration of wages per month for calculation purposes. Please go through the definition of wages under Section 2(s) of this Act.
With Regards,
R.N.Khola
From India, Delhi
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We are to make payment of gratuity to this employee in accordance with Section 4 of the Payment of Gratuity Act, 1972 for consideration of wages per month for calculation purposes. Please go through the definition of wages under Section 2(s) of this Act.
With Regards,
R.N.Khola
From India, Delhi
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Gratuity is calculated as follows: last drawn wages * number of years of service * 15/26.
For example:
Gratuity = 5724 * 6 years * 15/26
Gratuity = 19813.85
Gratuity = 19814 (Rounded Off Figure)
Thanks to both Mr. Prashant and Mr. R.N. Khola for the clarification.
Another point for clarification:
Date of Joining (DOJ) = 14/01/2004
Date of Leaving (DOL) = 04/01/2010
In January 2010, the salary details were as follows:
- Basic Salary = 5724
- HRA = 2862
- LTA = 1250
- Medical Allowance = 1250
- Company Allowance = 3606
- Advance Bonus = 700
Total Earnings = 15392
- PF = 687
- PT = 100
Net Earnings = 14605
In this scenario, how should we calculate the gratuity?
Regards,
Murthy
From India, Pune
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For example:
Gratuity = 5724 * 6 years * 15/26
Gratuity = 19813.85
Gratuity = 19814 (Rounded Off Figure)
Thanks to both Mr. Prashant and Mr. R.N. Khola for the clarification.
Another point for clarification:
Date of Joining (DOJ) = 14/01/2004
Date of Leaving (DOL) = 04/01/2010
In January 2010, the salary details were as follows:
- Basic Salary = 5724
- HRA = 2862
- LTA = 1250
- Medical Allowance = 1250
- Company Allowance = 3606
- Advance Bonus = 700
Total Earnings = 15392
- PF = 687
- PT = 100
Net Earnings = 14605
In this scenario, how should we calculate the gratuity?
Regards,
Murthy
From India, Pune
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Dear R.N.Khola Thanks for reply, now i understand a little bit, in this case the calculation for gratuity is (5724*15)/26*6 = 19813 pl correct me, if am wrong Regards Murthy
From India, Hyderabad
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From India, Hyderabad
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Hi In below attachment, Form D and Form E we r not using correct me if am wrong
From India, Hyderabad
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From India, Hyderabad
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Hi Where we have to submit the forms, who is controlling authority pl give the details about this. Regards Murthy
From India, Hyderabad
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From India, Hyderabad
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Hi Where we have to submit the Gratuity forms, who is controlling authority pl give the details about this. Regards Murthy
From India, Hyderabad
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From India, Hyderabad
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Dear all,
Often, we receive calls on how to calculate gratuity, i.e., if we say five and a half years, we have to consider six years of service. But how about four and a half years? Should it be rounded up to five years for gratuity calculation?
As per the Payment of Gratuity Act, 1972, the eligibility requirement is five years of service for an employee to be eligible for gratuity. Therefore, if an employee has completed four and a half years, they are not eligible for gratuity.
Regards,
M Srinivas
Ramky Group of Companies
Hyderabad Waste Management Project
Hyderabad
Email: srisu2412@rediffmail.com
Phone: 9866005600
From India, Hyderabad
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Often, we receive calls on how to calculate gratuity, i.e., if we say five and a half years, we have to consider six years of service. But how about four and a half years? Should it be rounded up to five years for gratuity calculation?
As per the Payment of Gratuity Act, 1972, the eligibility requirement is five years of service for an employee to be eligible for gratuity. Therefore, if an employee has completed four and a half years, they are not eligible for gratuity.
Regards,
M Srinivas
Ramky Group of Companies
Hyderabad Waste Management Project
Hyderabad
Email: srisu2412@rediffmail.com
Phone: 9866005600
From India, Hyderabad
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Dear Anop,
According to section 4(3) of the Payment of Gratuity Act, 1972, the amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees. Therefore, the gratuity amount is required to be paid at a sum of Rs. 3.5 lakhs.
With Regards,
R.N. Khola
From India, Delhi
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According to section 4(3) of the Payment of Gratuity Act, 1972, the amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees. Therefore, the gratuity amount is required to be paid at a sum of Rs. 3.5 lakhs.
With Regards,
R.N. Khola
From India, Delhi
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Dear Mr.Murthy, Please find attached for your information. If you need more information Thks & Regds, Mohana.S
From India, Coimbatore
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From India, Coimbatore
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Dear Mr. RN Khola, The govt has enhanced the limit of 3.5 lakhs to 10 lakhs for govt employees. Has there been any corresponding change in the gratuity act for employees. Regards Sajan
From India, Hyderabad
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From India, Hyderabad
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Dear Sajan,
So far, the government has not issued the amendment notification under the Payment of Gratuity Act, 1972. Until then, we are to take into account the maximum gratuity amount as Rs. 3.5 lakhs.
With Regards,
R.N. Khola
QUOTE=sajanssa;1056219]Dear Mr. R.N. Khola,
The government has enhanced the limit from 3.5 lakhs to 10 lakhs for government employees. Has there been any corresponding change in the gratuity act for employees?
Regards,
Sajan[/QUOTE]
From India, Delhi
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So far, the government has not issued the amendment notification under the Payment of Gratuity Act, 1972. Until then, we are to take into account the maximum gratuity amount as Rs. 3.5 lakhs.
With Regards,
R.N. Khola
QUOTE=sajanssa;1056219]Dear Mr. R.N. Khola,
The government has enhanced the limit from 3.5 lakhs to 10 lakhs for government employees. Has there been any corresponding change in the gratuity act for employees?
Regards,
Sajan[/QUOTE]
From India, Delhi
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Dear,
According to Section 4 of the Payment of Gratuity Act, 1972, an employee needs to render five years of continuous service as per Section 2A of this Act.
With Regards,
R.N.Khola
From India, Delhi
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According to Section 4 of the Payment of Gratuity Act, 1972, an employee needs to render five years of continuous service as per Section 2A of this Act.
With Regards,
R.N.Khola
From India, Delhi
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For the calculation of gratuity, only the basic salary plus DA should be considered. It can be calculated as Basic + DA / 26 * 15. Alternatively, you can simply take 4.8 percent of the basic salary + DA for gratuity provision, as per the Act, to be paid after 5 years of continuous service.
From India, Kochi
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From India, Kochi
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u need to submit to ACL central- if u r in hyd u need to send them to vidya nagar ATI campus controlling authority is labour dept central
From India, Hyderabad
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From India, Hyderabad
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Mr. KHOLA/anoop,
As per the Gratuity Act, an employer has to pay gratuity if an employee has 5 years of continuous service with the same organization. The maximum amount to be paid is 3.5 lakh. However, if there is an agreement between the employer and employee to pay more than 3.5 lakh, the act will not restrict the same. It depends on the organization whether to give more than 3.5 lakh.
Regards,
Sankar Alla
From India, Hyderabad
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As per the Gratuity Act, an employer has to pay gratuity if an employee has 5 years of continuous service with the same organization. The maximum amount to be paid is 3.5 lakh. However, if there is an agreement between the employer and employee to pay more than 3.5 lakh, the act will not restrict the same. It depends on the organization whether to give more than 3.5 lakh.
Regards,
Sankar Alla
From India, Hyderabad
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Mr. Srinivas,
In a case, MADRAS HIGH COURT HAS SANCTIONED GRATUITY TO AN EMPLOYEE WHO IS HAVING 4 YEARS AND 6 MONTHS OF SERVICE. HOWEVER, THE OTHER STATES NEED NOT TO FOLLOW THIS JUDGEMENT. I am not sure, but there was a judgement on this in SC. It said we need not to pay gratuity unless the employee serves 5 years. FYI pl.
Sankar Alla
From India, Hyderabad
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In a case, MADRAS HIGH COURT HAS SANCTIONED GRATUITY TO AN EMPLOYEE WHO IS HAVING 4 YEARS AND 6 MONTHS OF SERVICE. HOWEVER, THE OTHER STATES NEED NOT TO FOLLOW THIS JUDGEMENT. I am not sure, but there was a judgement on this in SC. It said we need not to pay gratuity unless the employee serves 5 years. FYI pl.
Sankar Alla
From India, Hyderabad
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Dear Sankar,
With due respect to your information, it is nowhere written as 'four years & six months service' in the judgment announced by the Hon'ble Madras High Court.
With Regards,
R.N. Khola
From India, Delhi
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With due respect to your information, it is nowhere written as 'four years & six months service' in the judgment announced by the Hon'ble Madras High Court.
With Regards,
R.N. Khola
From India, Delhi
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Dear Mohana Pathma Priya,
Your Gratuity Calculator.XLS is interesting. Good attempt. However, there is a mistake in the calculations.
As per the Payment of Gratuity Act, 1972, the payment of gratuity is calculated on a full year and not a partial year, i.e., on a pro-rata monthly basis.
It means that if you have completed 5 years of continuous service, you are eligible for gratuity. But if your service is 5 years and 1 month (i.e., up to 6 months), it is considered as only 5 years and not for 5.1 years. Similarly, if it is 5 years and 7 months (i.e., more than 6 months), it is to be paid for 6 years and not 5 years and 7 months on a pro-rata basis.
You may correct your calculator accordingly for the benefit of other junior HR fraternity.
With kindest regards,
J N Pathak
09825303208
Mohana Pathma Priya
Re: Clarifications on Payment of Gratuity Act, 1972
Dear Mr. Murthy,
Please find attached for your information. If you need more information.
Thanks & Regards,
Mohana S
Attached Files:
GRATUITY.ppt (101.0 KB, 13 views)
Gratuity Calculator.xls (18.5 KB)
From India, Ahmadabad
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Your Gratuity Calculator.XLS is interesting. Good attempt. However, there is a mistake in the calculations.
As per the Payment of Gratuity Act, 1972, the payment of gratuity is calculated on a full year and not a partial year, i.e., on a pro-rata monthly basis.
It means that if you have completed 5 years of continuous service, you are eligible for gratuity. But if your service is 5 years and 1 month (i.e., up to 6 months), it is considered as only 5 years and not for 5.1 years. Similarly, if it is 5 years and 7 months (i.e., more than 6 months), it is to be paid for 6 years and not 5 years and 7 months on a pro-rata basis.
You may correct your calculator accordingly for the benefit of other junior HR fraternity.
With kindest regards,
J N Pathak
09825303208
Mohana Pathma Priya
Re: Clarifications on Payment of Gratuity Act, 1972
Dear Mr. Murthy,
Please find attached for your information. If you need more information.
Thanks & Regards,
Mohana S
Attached Files:
GRATUITY.ppt (101.0 KB, 13 views)
Gratuity Calculator.xls (18.5 KB)
From India, Ahmadabad
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Dear All For the calcualtion of gratuity Basic salary +DA /26*15*number of year complited . regards santosh
From India, Mumbai
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From India, Mumbai
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Hi R.N.Khola,
Can you help me regarding gratuity? I have been working in an ISO standard BPO from 2005 until the present date, and I will be resigning on 31 March 2011. In the first year, from October 2005 to October 2006, I was not directly on the company's payroll (probation period), but from October 2006 until now, I have been on the company's payroll. I have completed a total of 5 1/2 years, so my question is, am I eligible for gratuity or not?
I have inquired with my company, and they have informed me that I am not eligible based on the period from October 2005 to October 2006, as I was not on the company's payroll during that time.
Please assist me with this matter as soon as possible.
Thank you,
Sangeeta W.
From India, Mumbai
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Can you help me regarding gratuity? I have been working in an ISO standard BPO from 2005 until the present date, and I will be resigning on 31 March 2011. In the first year, from October 2005 to October 2006, I was not directly on the company's payroll (probation period), but from October 2006 until now, I have been on the company's payroll. I have completed a total of 5 1/2 years, so my question is, am I eligible for gratuity or not?
I have inquired with my company, and they have informed me that I am not eligible based on the period from October 2005 to October 2006, as I was not on the company's payroll during that time.
Please assist me with this matter as soon as possible.
Thank you,
Sangeeta W.
From India, Mumbai
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Dear Sangeeta W,
You have mentioned that you were not on the direct payroll of the establishment and at the same time, you are stating that you were on probation from October 2005 to October 2006. With whom were you on probation? If you were not on the payroll of the establishment during this period, i.e., from October 2005 to September 2006, then you are not eligible to receive gratuity from the employer.
R.N. Khola
From India, Delhi
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You have mentioned that you were not on the direct payroll of the establishment and at the same time, you are stating that you were on probation from October 2005 to October 2006. With whom were you on probation? If you were not on the payroll of the establishment during this period, i.e., from October 2005 to September 2006, then you are not eligible to receive gratuity from the employer.
R.N. Khola
From India, Delhi
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hi sir, may i kw about section 7a PGA 1972 and actual calculation of payment of gratiuity. waitinf for ur prompt answer..... Rgds. Gaurav Oberoi
From India, Bangalore
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From India, Bangalore
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Dear Gaurav,
We do not find sec. 7a in PG Act, 1972. There happen to be section 7(1) & 7A under this Act. Sec.7(1) may be read as under while section 7A relates to appointment of inspectors.
7. Determination of the amount of gratuity.—
(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.
Calculation of gratuity is to be done as per sec. 4 of this Act & the same has already been provided by the members.
R.N.KHOLA
(Labour Law Consultants)
From India, Delhi
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We do not find sec. 7a in PG Act, 1972. There happen to be section 7(1) & 7A under this Act. Sec.7(1) may be read as under while section 7A relates to appointment of inspectors.
7. Determination of the amount of gratuity.—
(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.
Calculation of gratuity is to be done as per sec. 4 of this Act & the same has already been provided by the members.
R.N.KHOLA
(Labour Law Consultants)
From India, Delhi
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Hi there,
One of the employees has been terminated by the company. My question is whether he is eligible for gratuity or not, as he has not completed 5 years of service. His details are given below:
Date Of Joining: 01/01/2007
Date Of Termination: 08/09/2011
Regards,
Pranav
From India, Vadodara
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One of the employees has been terminated by the company. My question is whether he is eligible for gratuity or not, as he has not completed 5 years of service. His details are given below:
Date Of Joining: 01/01/2007
Date Of Termination: 08/09/2011
Regards,
Pranav
From India, Vadodara
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Dear all,
According to the Gratuity Act of 1972, this Act applies to every factory and organization. To be eligible for gratuity, the minimum employment period is 5 years. If an employee has completed 4 years and 7 months in any organization, should they be considered for gratuity? If so, why?
Can anyone please provide clarification on this matter?
With best regards,
Ram Mohan Prajapati
Human Resource Department
M - 9868612124
From India, Delhi
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According to the Gratuity Act of 1972, this Act applies to every factory and organization. To be eligible for gratuity, the minimum employment period is 5 years. If an employee has completed 4 years and 7 months in any organization, should they be considered for gratuity? If so, why?
Can anyone please provide clarification on this matter?
With best regards,
Ram Mohan Prajapati
Human Resource Department
M - 9868612124
From India, Delhi
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Dear Ram Mohan, He is not to be considered for payment of gratuity. R.N.KHOLA I I LL & IR I
From India, Delhi
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From India, Delhi
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Dear Aswini,
Go through section 4 of the Payment of Gratuity Act, 1972 to gain knowledge on the calculation of gratuity.
R.N. KHOLA
Skylark Associates | Gurgaon | Haryana
(M) 09810405361
Welcome Skylark Associates
From India, Delhi
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Go through section 4 of the Payment of Gratuity Act, 1972 to gain knowledge on the calculation of gratuity.
R.N. KHOLA
Skylark Associates | Gurgaon | Haryana
(M) 09810405361
Welcome Skylark Associates
From India, Delhi
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when an employee is paid consolidated sum say Rs 15000/= monthly as remuneration shall it be taken as monthly wages for purpose of Gratuity calculation( as there is no Basic or DA given) ?
From India, Chennai
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From India, Chennai
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Dear Member, If this consolidated monthly salary then you are to take this amount for the purpose of calculation of gratuity under PG Act, 1972.
From India, Delhi
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From India, Delhi
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Thank you, Mr. Kosla, for your reply on consolidated wages in respect of gratuity. Are there any case laws of high courts or the Supreme Court for consolidated wages to be taken as wages for the purpose of gratuity?
From India, Chennai
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From India, Chennai
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Can gratuity be paid by the employer before termination of service, that is when the employee is still working with the company based on current salary calculations (and promising to make necessary adjustments later)?
Can someone solve my query? Thanks for your time!
From India, Ahmedabad
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Can someone solve my query? Thanks for your time!
From India, Ahmedabad
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt