Dear Sowmya
Greetings.
There is no registration formality is there for Gratuity. All forms pertaining to Gratuity are available in the Act Book itself.
You can link the Gratuity with LIC for getting additional benefits for which you have to form Trust and lot of registeration formalities are there which will be explained by Business devpt manager of LIC.
Cheers
Trisha
HR Professional
From India, New Delhi
21Greetings.
There is no registration formality is there for Gratuity. All forms pertaining to Gratuity are available in the Act Book itself.
You can link the Gratuity with LIC for getting additional benefits for which you have to form Trust and lot of registeration formalities are there which will be explained by Business devpt manager of LIC.
Cheers
Trisha
HR Professional
From India, New Delhi
Hi Trisha Thanks a lot... But kindly let me know is there any offence if the company is not in the practice of providing gratuity to its employees. Thanks Sowmya
From India, Madras
From India, Madras
Dear Sowmya
Greetings.
There is no offence in not providing Gratuity. But what makes offence is when an employee resigns after completing of five year of service, you are not disbursing the Gratuity amount.
But nowadays, management think of money outflow in case of more no of resignations in a year, hence they plan with LIC where a premium would be remitted based on the members age, service, salary drawn and whenever an employee resigns LIC will take care of settlement.
Cheers
Trisha
HR Professional
From India, New Delhi
Greetings.
There is no offence in not providing Gratuity. But what makes offence is when an employee resigns after completing of five year of service, you are not disbursing the Gratuity amount.
But nowadays, management think of money outflow in case of more no of resignations in a year, hence they plan with LIC where a premium would be remitted based on the members age, service, salary drawn and whenever an employee resigns LIC will take care of settlement.
Cheers
Trisha
HR Professional
From India, New Delhi
Hi Anita
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years and on his retirement or resignation, if there is any case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. For every completed year of service, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned
But in the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days' wages for each season.
The amount of gratuity can not exceed more than 3.5 lakh rupees.The gratuity payable to an employee may be wholly or partially cancelled, if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part.
From India
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years and on his retirement or resignation, if there is any case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. For every completed year of service, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned
But in the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days' wages for each season.
The amount of gratuity can not exceed more than 3.5 lakh rupees.The gratuity payable to an employee may be wholly or partially cancelled, if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part.
From India
Hi All,
Enforcement of Gratuity Act falls under Labour department of respective state.
If any establishment registered under shops and establishment act or factory act with employee strength of 20 or more.
You can download the attached files for further readings. It has Gratuity Act. I also sending a file that has extract of all labour laws. I got this file in this forum. I am sure it will benefit all.
If someone need any Labour laws please let me know. I am willing to share it.
Rgds
vishwanath
From India, Bangalore
Enforcement of Gratuity Act falls under Labour department of respective state.
If any establishment registered under shops and establishment act or factory act with employee strength of 20 or more.
You can download the attached files for further readings. It has Gratuity Act. I also sending a file that has extract of all labour laws. I got this file in this forum. I am sure it will benefit all.
If someone need any Labour laws please let me know. I am willing to share it.
Rgds
vishwanath
From India, Bangalore
Dear Anita, Please get in touch with the Controlling Authority under Payment of Gratuity Act for your region. You will have to apply before him for registration. Regards, Shantonu
hi all,
At the moment you just need to submit Form "A" at labour office, its a intimation to labour office, opening of a new establishment, then get Form "F" from each employees, its a nomination form it a mandatory to fill up this form, the gratuity is payable when employee resigns or at retirement. For further information you are free to take advice.
From India, Mumbai
At the moment you just need to submit Form "A" at labour office, its a intimation to labour office, opening of a new establishment, then get Form "F" from each employees, its a nomination form it a mandatory to fill up this form, the gratuity is payable when employee resigns or at retirement. For further information you are free to take advice.
From India, Mumbai
Dear Trisha,
I hav query that you told employes salary of 15 days of per year if employe get a increment three time in year than how we will calculate the 15 days salary I think we will see how much we paid in a year and divide by that by 365 after that multiply by 15 Am I right pls. explain.
Regards,
Arti
From India, New Delhi
I hav query that you told employes salary of 15 days of per year if employe get a increment three time in year than how we will calculate the 15 days salary I think we will see how much we paid in a year and divide by that by 365 after that multiply by 15 Am I right pls. explain.
Regards,
Arti
From India, New Delhi
Dear Arti
Greetings.
Though you have given three times increments, you have to calculate gratuity based on last month salary drawn, otherwise, updated salary and the calculation is as follows.
Rs.10000/-(Basic salary) X 15/26 X No of years of service.
Less than 6 months of service shall be omitted and more than 6 months shall be rounded off to one year.
Any doubt you can address your queries to this thread.
Cheers
Trisha
HR Professional
From India, New Delhi
Greetings.
Though you have given three times increments, you have to calculate gratuity based on last month salary drawn, otherwise, updated salary and the calculation is as follows.
Rs.10000/-(Basic salary) X 15/26 X No of years of service.
Less than 6 months of service shall be omitted and more than 6 months shall be rounded off to one year.
Any doubt you can address your queries to this thread.
Cheers
Trisha
HR Professional
From India, New Delhi
Yes , You can.
Contact the group business division of any of the life insurance companies who has fairly large funds under management ( HDFC std life, ICICI pru,LIC, SBI life or TATA AIG) in your city. They will help you with the valuation of your liability and funding options and documentation for trust formation and CIT approval of the gratuity fund/trust.
In case you need further assistance write to me at
Contact the group business division of any of the life insurance companies who has fairly large funds under management ( HDFC std life, ICICI pru,LIC, SBI life or TATA AIG) in your city. They will help you with the valuation of your liability and funding options and documentation for trust formation and CIT approval of the gratuity fund/trust.
In case you need further assistance write to me at
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt