The Payment of Gratuity Act, 1972 applies to factories and other establishments employing ten or more persons. On completion of five years service, the employees are entitled to payment of gratuity @15 days wages for every completed year of service or part thereof in excess of six months subject to a maximum of Rs.10 lakh. The current maximum limit is applicable from 24.9.1997. The wage ceiling for coverage under the Act has since been removed w.e.f. 24.05.1994.
From India, Pune
22From India, Pune
Kindly read the date of revised ceiling as 24.05.2010 instead of 24.09.1997 in my above post.
From India, Pune
From India, Pune
If working of 5 yrs is in same company and the period from joining to till date is 5 yrs only then an employee is eligible for gratuity. if service is more than 1 company and tenure is 5 yrs then the employee is not eligible for gratuity from his current company......
From India, Bangalore
From India, Bangalore
anyone who has completed 5 years of continuous service in a company is entitled to get gratuity on his resignation or retirement
From India, Madras
From India, Madras
Payment of Gratuity Act, 1972
•Principle?
–By faithful service over a long period, the employee is entitled to claim a certain amount as a retirement benefit.
–Gratuity is paid out at the time of superannuation (if you retire at the age of 58, when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least 5 full years of service with an employer to qualify for gratuity.
•Rate of Gratuity
• Gratuity =
• Every completed years of service * 15 days wages
• 15 days wages =
• (based on last salary drawn)
• {(Monthly Basic + DA) /26} * 15 days
• Maximum gratuity
• Shall not exceed Rs. 3,50,000 as per Act & it is not taxable
From India, Bangalore
Dear All
There has been an amendment to the act which says the gratuity limit has been enhanced from 3.5 lakhs to Rs.10 lakhs effective May 24, 2010 as per the payment of Gratuity (Amendment)Act, 2010.
Will go through this amendment to be more sure of the applicability & will post the updates ASAP.
JMK
From India, Hyderabad
There has been an amendment to the act which says the gratuity limit has been enhanced from 3.5 lakhs to Rs.10 lakhs effective May 24, 2010 as per the payment of Gratuity (Amendment)Act, 2010.
Will go through this amendment to be more sure of the applicability & will post the updates ASAP.
JMK
From India, Hyderabad
Reg : ESIC Subcodes : Dear Friend, let me know the employees where are they working....depends upon state and location.
From India, Bangalore
From India, Bangalore
Dear Friends
As per my knowledge if employee is on roll of company & he continuously work 4 year & 240 days in a same concern, than he is entitled for gratuity.
And company can clear his all dues from employee's gratuity amount.
But Company can not deducted any amount from employee's PF Amount ( as Per sec 10(d) of PF Act.)
From India, Calcutta
As per my knowledge if employee is on roll of company & he continuously work 4 year & 240 days in a same concern, than he is entitled for gratuity.
And company can clear his all dues from employee's gratuity amount.
But Company can not deducted any amount from employee's PF Amount ( as Per sec 10(d) of PF Act.)
From India, Calcutta
Is there any formula to calculate monthly Gratuity for the fund reservation. Regards Rajesh
From India, Surat
From India, Surat
if an employee serv for 5 years continuously in the same organisation is applicable for gratuity.
not applicable- if he s having 5 yrs or more than 5 yrs of experience in various organisation will not be applicable for gratuity. ther must be continuous minimum 5 yers of service in the same organisation then the employee will be applicable for gratuity.
From United States, Columbus
not applicable- if he s having 5 yrs or more than 5 yrs of experience in various organisation will not be applicable for gratuity. ther must be continuous minimum 5 yers of service in the same organisation then the employee will be applicable for gratuity.
From United States, Columbus
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Employee Appraisal Form new.doc