Hi,all members, Please tell me in detail about Gratuity. Please give answers to the following question
Q.1 - what is the eligibility for getting GRATUITY?
Q.2 - What is a formula for calculating Gratuity? please tell with example
Q.3 - what forms we used for gratuity?
Q.4 - do we need to send returns for this, if yes where we have to send them and which form is used for this?
please reply soon.
From India, Delhi
9Q.1 - what is the eligibility for getting GRATUITY?
Q.2 - What is a formula for calculating Gratuity? please tell with example
Q.3 - what forms we used for gratuity?
Q.4 - do we need to send returns for this, if yes where we have to send them and which form is used for this?
please reply soon.
From India, Delhi
hi lokesh,
For ur reference......
1.The employee need to work min 5years of continuous service to the company to entitle the Gratuity....and it can be given during Full and final settlement
2 formula for Gratuity = Basic *No of years*1/2
Maximum limit for gratuity is 10,00,000 non taxable
There is no forms for gratuity ......
From India, Bangalore
For ur reference......
1.The employee need to work min 5years of continuous service to the company to entitle the Gratuity....and it can be given during Full and final settlement
2 formula for Gratuity = Basic *No of years*1/2
Maximum limit for gratuity is 10,00,000 non taxable
There is no forms for gratuity ......
From India, Bangalore
Let me correct that gratuity is calculated on 15 days of average salary last drawn multiplied by the no. years of service. The daily rate of salary is derived by dividing the monthly salary by 26 and not exactly the half of monthly salary. To add one more, service of a fraction of a year of more than six months shall be treated as a full year and therefore, if the employee had put in a service of 5 years, 6 months and one day, he would be eligible for six years gratuity.
The common forms available are form I (used by the employee to claim gratuity), form L used for sanctioning gratuity and form F which is used for collecting nomination from the employee. It is required that every establishment to which Payment of Gratuity Act applies should get form F from every employee who has completed one year of service. In addition to these there are returns to be filed before the appropriate authorities which may differ from state to state.
Since the topic has been discussed in length you are requested to follow other threads on the subject, like eligibility for gratuity (as there exists controversy regarding entitlement after 4 years and 240 days of service) , forfeiture of gratuity etc
Regards,
Madhu.T.K
From India, Kannur
The common forms available are form I (used by the employee to claim gratuity), form L used for sanctioning gratuity and form F which is used for collecting nomination from the employee. It is required that every establishment to which Payment of Gratuity Act applies should get form F from every employee who has completed one year of service. In addition to these there are returns to be filed before the appropriate authorities which may differ from state to state.
Since the topic has been discussed in length you are requested to follow other threads on the subject, like eligibility for gratuity (as there exists controversy regarding entitlement after 4 years and 240 days of service) , forfeiture of gratuity etc
Regards,
Madhu.T.K
From India, Kannur
Dear Mr sharma,
You are required to give notice of opening in form A. also nomination is required to be taken from the employee in form F. You are required to display the abstract of the Payment of gratuity act, in a prominent place in the co. Gratuity is payable upon resignation or retirement, superannuation or on his death or disablement due to accident or disease.
From India, Pune
You are required to give notice of opening in form A. also nomination is required to be taken from the employee in form F. You are required to display the abstract of the Payment of gratuity act, in a prominent place in the co. Gratuity is payable upon resignation or retirement, superannuation or on his death or disablement due to accident or disease.
From India, Pune
We have a similar case in our company. One of our employee resigned after 4 years and 9 months service has claimed for gratuity amount.
Article I referred says that, 6 months block is applicable to those who completed 5 years and above.
eg: If the employee resigns after 5 years and 7 months, he is entitled for 6 years gratuity amount whereas if the employee resigns after 4 years and 7 months, he is not entitled to 5 years gratuity.
Could anyone please clarify the same.
Kumar
From India, Chennai
Article I referred says that, 6 months block is applicable to those who completed 5 years and above.
eg: If the employee resigns after 5 years and 7 months, he is entitled for 6 years gratuity amount whereas if the employee resigns after 4 years and 7 months, he is not entitled to 5 years gratuity.
Could anyone please clarify the same.
Kumar
From India, Chennai
Hi Lokesh,
Found this ppt on CiteHR which summerises every single doubt:
https://www.citehr.com/444942-gratuity.html
Also you can chk foll links for better and detailed understanding:
Payment Of Gratuity Act 1972
Recent Amendments to Payment of Gratuity Act, 1972 « TalentMoon Blogs
FAQ under the Payment of Gratuity Act
Gratuity PDF (for reference) http://www.legalissuesforngos.org/ma...r/gratuity.pdf
From India, Mumbai
Found this ppt on CiteHR which summerises every single doubt:
https://www.citehr.com/444942-gratuity.html
Also you can chk foll links for better and detailed understanding:
Payment Of Gratuity Act 1972
Recent Amendments to Payment of Gratuity Act, 1972 « TalentMoon Blogs
FAQ under the Payment of Gratuity Act
Gratuity PDF (for reference) http://www.legalissuesforngos.org/ma...r/gratuity.pdf
From India, Mumbai
Mr. Kumar...
As per the act bare mimnimum period is 4 years as 240 days = 4 years and 8 months and hence he's eligible for gratuity
you can use above ppt and links and clear all your further queries.
The 6 months period you suggested works like this...
After becoming eligible (i.e. completing 5 years of serivce)
if you resign/retire in first 6 months, then no. of years served is rounded off to previous year.
if you resign/retire in next 6 months, then no. of years served is rounded off to next year.
so say for eg. you resign after 5 years 4 months, gratuity is calculated on 5 years.
on other hand if you resign after 5 yrs 7 months, gratuity is calculated on 6 years.
Hope it helped
From India, Mumbai
As per the act bare mimnimum period is 4 years as 240 days = 4 years and 8 months and hence he's eligible for gratuity
you can use above ppt and links and clear all your further queries.
The 6 months period you suggested works like this...
After becoming eligible (i.e. completing 5 years of serivce)
if you resign/retire in first 6 months, then no. of years served is rounded off to previous year.
if you resign/retire in next 6 months, then no. of years served is rounded off to next year.
so say for eg. you resign after 5 years 4 months, gratuity is calculated on 5 years.
on other hand if you resign after 5 yrs 7 months, gratuity is calculated on 6 years.
Hope it helped
From India, Mumbai
Hi Lokesh,
Q.1 - what is eligibility for getting GRATUITY--- If the employee stays in the organisation for more 5 or more years he is eligible for Gratuity.
Eg: If an employees stays with the organisation for suppose 4 years.6 Months he is eligible, and if S/He stays for 4 Years.04 Months then S/He is'nt eligible.
Q.2 - What is formula for calculating Gratuity? please tell with example
Formula Used :
Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
Where,
D.A = Dearness Allowance.
Gratuity Eligibility :
1. Any person employed on wages/salary.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years.
3. Payable without completion of five years only when death and disablement.
This gratuity calculator is applicable only for Indian employee.
Q.3 - what forms we used for gratuity ?-- No forms Required
From India, Hyderabad
Q.1 - what is eligibility for getting GRATUITY--- If the employee stays in the organisation for more 5 or more years he is eligible for Gratuity.
Eg: If an employees stays with the organisation for suppose 4 years.6 Months he is eligible, and if S/He stays for 4 Years.04 Months then S/He is'nt eligible.
Q.2 - What is formula for calculating Gratuity? please tell with example
Formula Used :
Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
Where,
D.A = Dearness Allowance.
Gratuity Eligibility :
1. Any person employed on wages/salary.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years.
3. Payable without completion of five years only when death and disablement.
This gratuity calculator is applicable only for Indian employee.
Q.3 - what forms we used for gratuity ?-- No forms Required
From India, Hyderabad
eligibility : 5 yrs of continuous service
15 days wages for every completed year @ last drawn wages
eg Gratuity = Monthly Salary x 15 days x No. of yrs. of service/26
goto : https://www.citehr.com/282195-required-info-reg-gratuity-act-1926-a.html#post1530006 for gratuity forms
Hope this info is useful.
From India, Visakhapatnam
15 days wages for every completed year @ last drawn wages
eg Gratuity = Monthly Salary x 15 days x No. of yrs. of service/26
goto : https://www.citehr.com/282195-required-info-reg-gratuity-act-1926-a.html#post1530006 for gratuity forms
Hope this info is useful.
From India, Visakhapatnam
Dear Professionals
I have a very serious doubt on how you work the gratuity calculation. Please dont come back and tell me 15 days wages X 15/26 etc etc. Please........ I am well aware of this. My doubt is what exactly is this 15 days wages. Ideally in all their wisdom, whoever worked this out wanted the employer to shell out half a months salary. But when you start calculating things, ignoring HRA which is a very big component, ignoring Other allowances which is another very big amount from the salary, you are only left with Basic and the 50% percent of that ultimately works out only to QUARTER months salary. And this is happily agreed to by all the so-called world known Auditors, which makes the employers happy. But are the Labour Department, Gratuity competent authorities aware of this, and are they doing anything for this?????
Kindly share your thoungs.
V Chithranath
From India, Madras
I have a very serious doubt on how you work the gratuity calculation. Please dont come back and tell me 15 days wages X 15/26 etc etc. Please........ I am well aware of this. My doubt is what exactly is this 15 days wages. Ideally in all their wisdom, whoever worked this out wanted the employer to shell out half a months salary. But when you start calculating things, ignoring HRA which is a very big component, ignoring Other allowances which is another very big amount from the salary, you are only left with Basic and the 50% percent of that ultimately works out only to QUARTER months salary. And this is happily agreed to by all the so-called world known Auditors, which makes the employers happy. But are the Labour Department, Gratuity competent authorities aware of this, and are they doing anything for this?????
Kindly share your thoungs.
V Chithranath
From India, Madras
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