Gratuity :
It is given to a Person for Long and Meritorious Service in any Industry. gratuity is payable even to an employee who resigns after completing at least 5 years of service.
Applicability:
Every factory, Mine, Oil field, Plantation, Port, Railways, Company, shop establishment or educational institutions employing ten or more persons
Main Provisions
Gratuity Eligibility Criteria:
Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years. Thus for an employee to become entitled for the payment of gratuity, he must have rendered continuous service of at least 5 years. The completion of continuous service of 5 years is not necessary where the termination of the employment of an employee is due to his death or disablement.
Wages for calculation:
Gratuity is calculated at the rate of 15 days’ wages for every completed year as if the month comprises of 26 days at the last drawn wages.
Monthly Salary x 15 days x No. of yrs. of service/
26
Employee: All employees irrespective of status or salary.
Qualifying period: On rendering of 5 years of service either on termination or on resignation or retirement.
Entitlement: On completion of 5 years service except in case of death or disablement.
Maximum ceiling: Rs.3,50,000/-
When Gratuity not Paid??? :
* On termination of an employee for disorderly behaviour
* Wholly or partly for willfully causing loss destruction of property, etc.,
Penalties:
* Imprisonment for six months or fine upto Rs.10,000 for avoiding to make payment by making false statement or representation.
* Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or rules.
For More Reference check the given below link:
1. Payment Of Gratuity Act 1972
From India, Coimbatore
20It is given to a Person for Long and Meritorious Service in any Industry. gratuity is payable even to an employee who resigns after completing at least 5 years of service.
Applicability:
Every factory, Mine, Oil field, Plantation, Port, Railways, Company, shop establishment or educational institutions employing ten or more persons
Main Provisions
Gratuity Eligibility Criteria:
Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years. Thus for an employee to become entitled for the payment of gratuity, he must have rendered continuous service of at least 5 years. The completion of continuous service of 5 years is not necessary where the termination of the employment of an employee is due to his death or disablement.
Wages for calculation:
Gratuity is calculated at the rate of 15 days’ wages for every completed year as if the month comprises of 26 days at the last drawn wages.
Monthly Salary x 15 days x No. of yrs. of service/
26
Employee: All employees irrespective of status or salary.
Qualifying period: On rendering of 5 years of service either on termination or on resignation or retirement.
Entitlement: On completion of 5 years service except in case of death or disablement.
Maximum ceiling: Rs.3,50,000/-
When Gratuity not Paid??? :
* On termination of an employee for disorderly behaviour
* Wholly or partly for willfully causing loss destruction of property, etc.,
Penalties:
* Imprisonment for six months or fine upto Rs.10,000 for avoiding to make payment by making false statement or representation.
* Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or rules.
For More Reference check the given below link:
1. Payment Of Gratuity Act 1972
From India, Coimbatore
An employee has to apply for gratuity in form I. The amount is supposed to be paid to him before 30 days of his leaving service.
Let me also make a correction to the post by amrita, that the maximum gratuity is not 3.5 Lakhs but it is Rs 10 lakhs now.
Regards,
Madhu.T.K
From India, Kannur
Let me also make a correction to the post by amrita, that the maximum gratuity is not 3.5 Lakhs but it is Rs 10 lakhs now.
Regards,
Madhu.T.K
From India, Kannur
I like to know the format to apply for my gratuity, i worked for 5 years in the company and how to apply for it, and please can anybody help me in providing the format... Thanking You; dinesh
From India, Bangalore
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc