Dear All, Can any one give the details and Process of Gratuity from start to end. Regards, Subbiah
From India, Madras
1From India, Madras
Definition
(b) "completed year of service" means continuous service for one year;
(c) "continuous service" means continuous service as defined in Section 2-A;
(d) "controlling authority" means an authority appointed by the appropriate Government under Section 3;
(e) "employee" means any person (other than an apprentice) employed on wages, [* * *] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
(f) "employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop-
(i) belonging to, or under the control of the Central Government or a State Government, a person or authority appointed by the appropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, the head of the Ministry or the Department concerned,
(ii) belonging to, or under the control of, any local authority, the person appointed by such authority for the supervision and control of employees or where no person has been so appointed, the chief executive officer of the local authority,
(iii) in any other case, the person, who, or the authority which, has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop, and where the said affairs are entrusted to any other person, whether called a manager, managing director or by any other name, such person ;
(g) "factory" has the meaning assigned to it in clause (m) of Section 2 of the Factories Act, 1948 (63 of 1948) ;
(h) "family", in relation to an employee, shall be deemed to consist of-
(i) in the case of a male employee, himself, his wife, his children, whether married or unmarried, his dependent parents and the dependent parents of his wife and the widow and children of his predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents and the dependent parents of her husband and the widow and children of her predeceased son, if any :
Explanation.- Where the personal law of an employee permits the adoption by him of a child, any child lawfully adopted by him shall be deemed to be included in his family, and where a child of an employee has been adopted by another person and such adoption is, under the personal law of the person making such adoption, lawful, such child shall be deemed to be excluded from the family of the employee ;
(i) "major port" has the meaning assigned to it in clause (8) of Section 3 of the Indian Ports Act, 1908 (15 of 1908) ;
(j) "mine" has the meaning assigned to it in clause (j) of sub-section (1) of Section 2 of the Mines Act, 1952 (35 of 1952) ;
(k) "notification" means a notification published in the Official Gazette ;
(l) "oilfield" has the meaning assigned to it in clause (e) of Section 3 of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948) ;
(m) "plantation" has the meaning assigned to it in clause (f) of Section 2 of the Plantations Labour Act, 1951 (69 of 1951) ;
(n) "port" has the meaning assigned to it in clause (4) of Section 3 of the Indian Ports Act, 1908 (15 of 1908) ;
(o) "prescribed" means prescribed by rules made under this Act ;
(p) "railway company" has the meaning assigned to it in clause (5) of Section 3 of the Indian Railways Act, 1890 (9 of 1890) ;
(q) "retirement" means termination of the service of an employee otherwise than on superannuation ;
(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service as the age on the attainment of which the employee shall vacate the employment ;
(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
From India, Kolkata
(b) "completed year of service" means continuous service for one year;
(c) "continuous service" means continuous service as defined in Section 2-A;
(d) "controlling authority" means an authority appointed by the appropriate Government under Section 3;
(e) "employee" means any person (other than an apprentice) employed on wages, [* * *] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
(f) "employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop-
(i) belonging to, or under the control of the Central Government or a State Government, a person or authority appointed by the appropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, the head of the Ministry or the Department concerned,
(ii) belonging to, or under the control of, any local authority, the person appointed by such authority for the supervision and control of employees or where no person has been so appointed, the chief executive officer of the local authority,
(iii) in any other case, the person, who, or the authority which, has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop, and where the said affairs are entrusted to any other person, whether called a manager, managing director or by any other name, such person ;
(g) "factory" has the meaning assigned to it in clause (m) of Section 2 of the Factories Act, 1948 (63 of 1948) ;
(h) "family", in relation to an employee, shall be deemed to consist of-
(i) in the case of a male employee, himself, his wife, his children, whether married or unmarried, his dependent parents and the dependent parents of his wife and the widow and children of his predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents and the dependent parents of her husband and the widow and children of her predeceased son, if any :
Explanation.- Where the personal law of an employee permits the adoption by him of a child, any child lawfully adopted by him shall be deemed to be included in his family, and where a child of an employee has been adopted by another person and such adoption is, under the personal law of the person making such adoption, lawful, such child shall be deemed to be excluded from the family of the employee ;
(i) "major port" has the meaning assigned to it in clause (8) of Section 3 of the Indian Ports Act, 1908 (15 of 1908) ;
(j) "mine" has the meaning assigned to it in clause (j) of sub-section (1) of Section 2 of the Mines Act, 1952 (35 of 1952) ;
(k) "notification" means a notification published in the Official Gazette ;
(l) "oilfield" has the meaning assigned to it in clause (e) of Section 3 of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948) ;
(m) "plantation" has the meaning assigned to it in clause (f) of Section 2 of the Plantations Labour Act, 1951 (69 of 1951) ;
(n) "port" has the meaning assigned to it in clause (4) of Section 3 of the Indian Ports Act, 1908 (15 of 1908) ;
(o) "prescribed" means prescribed by rules made under this Act ;
(p) "railway company" has the meaning assigned to it in clause (5) of Section 3 of the Indian Railways Act, 1890 (9 of 1890) ;
(q) "retirement" means termination of the service of an employee otherwise than on superannuation ;
(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service as the age on the attainment of which the employee shall vacate the employment ;
(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
From India, Kolkata
Dear Subbiah,
Please find below:
Applicability:
1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.
4. Once Act applies, it continues to apply even if employment strength falls below 10.
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. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
Benefits:
1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
2. The total amount of gratuity payable shall not exceed the prescribed limit.
3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit
Calculation of Gratuity:
1. Gratuity = (Monthly Salary/26) x 15 days x No. of yrs. of service
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
Penal Provisions:
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000.
Forms Related to Payment of Gratuity (Central) Rules, 1972:
1 Form A Rule 3(1) : Notice of opening
2 Form B Rule 3(2): Notice of change
3 Form C Rule 3(3) : Notice of closure
4 Form D Rule 5(1) : Notice for excluding husband from family
5 Form E Rule 5(2) : Notice of withdrawal of notice for excluding husband from family
6 Form F Rule 6(1) : Nomination
7 Form G Rule 6(3) : Fresh Nomination
8 Form H Rule 6(4) : Modification of nomination
9 Form I Rule 7(1) : Application of Gratuity by an Employee
10 Form J Rule 7(2) : Application for gratuity by a Nominee.
11 Form K Rule 7(3) : Application for gratuity by a Legal Heir.
12 Form L Rule 8(1)(i) : Notice for payment of gratuity
13 Form M Rule 8(1)(ii) : Notice rejecting claim for payment of gratuity
14 Form N Rule 10(1) : Application for direction to controlling Authority.
15 Form O Rule 11(1) : Notice for appearance before the Controlling Authority
16 Form P Rule 14 : Summons to appear before Controlling Authority.
17 Form Q Rule 16(1) : Particulars of application under Section 16
18 Form R Rule 17 : Notice for Payment of Gratuity
19 Form S Rule 18(8) : Notice for payment of gratuity as determined by Appellate Authority
20 Form T Rule 19 : Application for recovery of gratuity
21 Form U Rule 20 : Abstract of the Act and Rules
For any further clarification feel free to write or disucss.
From India, Mumbai
Please find below:
Applicability:
1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.
4. Once Act applies, it continues to apply even if employment strength falls below 10.
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. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
Benefits:
1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
2. The total amount of gratuity payable shall not exceed the prescribed limit.
3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit
Calculation of Gratuity:
1. Gratuity = (Monthly Salary/26) x 15 days x No. of yrs. of service
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
Penal Provisions:
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000.
Forms Related to Payment of Gratuity (Central) Rules, 1972:
1 Form A Rule 3(1) : Notice of opening
2 Form B Rule 3(2): Notice of change
3 Form C Rule 3(3) : Notice of closure
4 Form D Rule 5(1) : Notice for excluding husband from family
5 Form E Rule 5(2) : Notice of withdrawal of notice for excluding husband from family
6 Form F Rule 6(1) : Nomination
7 Form G Rule 6(3) : Fresh Nomination
8 Form H Rule 6(4) : Modification of nomination
9 Form I Rule 7(1) : Application of Gratuity by an Employee
10 Form J Rule 7(2) : Application for gratuity by a Nominee.
11 Form K Rule 7(3) : Application for gratuity by a Legal Heir.
12 Form L Rule 8(1)(i) : Notice for payment of gratuity
13 Form M Rule 8(1)(ii) : Notice rejecting claim for payment of gratuity
14 Form N Rule 10(1) : Application for direction to controlling Authority.
15 Form O Rule 11(1) : Notice for appearance before the Controlling Authority
16 Form P Rule 14 : Summons to appear before Controlling Authority.
17 Form Q Rule 16(1) : Particulars of application under Section 16
18 Form R Rule 17 : Notice for Payment of Gratuity
19 Form S Rule 18(8) : Notice for payment of gratuity as determined by Appellate Authority
20 Form T Rule 19 : Application for recovery of gratuity
21 Form U Rule 20 : Abstract of the Act and Rules
For any further clarification feel free to write or disucss.
From India, Mumbai
Dear Subbiah,
Gratuity: If amount is received before completion of five years of service with employer, it should be taxable. Else it would be non-taxable up to Rs 10 lakh in case of non-government servants. In case of Government service employees, it would be fully non taxable.
From India, Mumbai
Gratuity: If amount is received before completion of five years of service with employer, it should be taxable. Else it would be non-taxable up to Rs 10 lakh in case of non-government servants. In case of Government service employees, it would be fully non taxable.
From India, Mumbai
Dear all, Prasenji says that gratuity ceiling is Rs. 350000/- but V.B. Says 1000000/- . which one correct according existing period.?
From India, Secunderabad
From India, Secunderabad
Respected Seniors, Please guide about the procedure for withdrawing gratuity amount.. Rgds, Rahul
From India, Pune
From India, Pune
Hi this is my simple suggestion Max. Gratuity payable under the Act is Rs. 100000/- Gratuity = (Monthly Salary/26) x 15 days x No. of yrs. of service
From India, Mumbai
From India, Mumbai
Hi All,
Thank you so much for sharing inforation about gratuity. Can any one guide me that in the even of death of an employee(whether completed 5 years or below 5 years of services in the company), what is the statutory rule for calculating gratuity?
Will be highly thankfull to you all for sharing your kind suggestions & guidance in this regard.
Thanks and regards,
Bhumi Upadhayaya
From India, Delhi
Thank you so much for sharing inforation about gratuity. Can any one guide me that in the even of death of an employee(whether completed 5 years or below 5 years of services in the company), what is the statutory rule for calculating gratuity?
Will be highly thankfull to you all for sharing your kind suggestions & guidance in this regard.
Thanks and regards,
Bhumi Upadhayaya
From India, Delhi
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc