Dear Seniors
as mention link in one of the above post, please out your views on the following query.
Q.1 Why it is good to have Gratuity Insurance.
Ans. Gratuity is payable only in case employee completes minimum 5 years of service. However in case of death of an employee, the rule of completing 5 years is not applicable. This means the Gratuity is payable. The sum payable is very high. Ideally the wages for death or permanent disability should be considered on the basis of average increase in basic salary per year. Here, we will take example on last earning basic salary. We will again take same example of 17000 as a basic salary.
Employee's date of Birth: 01.01.1988
Current monthly basic salary: 17000
Date of appointment: 01.01.2010
Retirement age as per appointment letter : 58 years
Current age: 25 years
Date of death of the employee: 30.11.2012
Total no. of years of service left: 58-25 = 33
Gratuity payable: 17000/26 X 15 X 33= 323654
here is my question is:- if any employee has died during working the will he eligible as mention above calculation.
please noted the age factor and calculation.
kindly share your valuable reply.
From India, Dehra Dun
24as mention link in one of the above post, please out your views on the following query.
Q.1 Why it is good to have Gratuity Insurance.
Ans. Gratuity is payable only in case employee completes minimum 5 years of service. However in case of death of an employee, the rule of completing 5 years is not applicable. This means the Gratuity is payable. The sum payable is very high. Ideally the wages for death or permanent disability should be considered on the basis of average increase in basic salary per year. Here, we will take example on last earning basic salary. We will again take same example of 17000 as a basic salary.
Employee's date of Birth: 01.01.1988
Current monthly basic salary: 17000
Date of appointment: 01.01.2010
Retirement age as per appointment letter : 58 years
Current age: 25 years
Date of death of the employee: 30.11.2012
Total no. of years of service left: 58-25 = 33
Gratuity payable: 17000/26 X 15 X 33= 323654
here is my question is:- if any employee has died during working the will he eligible as mention above calculation.
please noted the age factor and calculation.
kindly share your valuable reply.
From India, Dehra Dun
Hii Nilesh,
I would like to throw some light on your situation,
Payment of Gratutity,1972 says that it is applicable,
to any establishment in which 10 or more person are employed,
the employee has rendered a serevice of 5 years and is paid after Termination.
These both condition are valid in your situation.
But the law also mentions " Forfeitation of Gratutiy" which says that the gratuity can be forfeited by the employer wholely or partially if the service is terminated.
Gratuity is calculated at the rate of 15 days wages for every completed year. ( wages means the last drawn rate of wages). so you can calculate you gratuity using it.
I hope it will help
Ankita
From India, Pune
I would like to throw some light on your situation,
Payment of Gratutity,1972 says that it is applicable,
to any establishment in which 10 or more person are employed,
the employee has rendered a serevice of 5 years and is paid after Termination.
These both condition are valid in your situation.
But the law also mentions " Forfeitation of Gratutiy" which says that the gratuity can be forfeited by the employer wholely or partially if the service is terminated.
Gratuity is calculated at the rate of 15 days wages for every completed year. ( wages means the last drawn rate of wages). so you can calculate you gratuity using it.
I hope it will help
Ankita
From India, Pune
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc