Dear all, Can anyone tell me about Gratuity in briefly?I want to know how to calculate and eligibility of Gratuity?
From India, Bangalore
1From India, Bangalore
Gratuity will be granted for good, efficient and faithful service to whole-time Employees of the Company, including the Chief Executive and full time Functional Directors, but shall exclude the following :-
(i) Casual and non-regular workmen,
(ii) Govt. servants and others employed on deputation terms,
(iii) Persons engaged on contract basis,
(iv) Apprentices and trainees, and
(v) Reemployed persons (Reemployed person means a person employed in the Company
on attaining the age of superannuation).
PAYMENT OF GRATUITY:
(1) 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 :-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c ) on his death or disablement due to accident or disease.
Provided that the completion of continuous service of five years shall not be necessary
where the termination of the employment of any employee is due to death or disablement.
Provided further that in the 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, and where any such nominee or heir is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Calculation of Gratuity - Fifteen days wages for every completed year of service have to be calculated on the basis of wages paid to an employee for the month divided by twenty – six days and the quotient multiplied by fifteen days.
Calculation of Gratuity shall be made as under:
((Pay+DA+Personal Pay If exist) x 15 x No. of completed years of service) / 26= Gratuity (From 01.01.2007 it was increased amount from 3.5Lac to 10Lacs max. to be paid)
From India, Pune
(i) Casual and non-regular workmen,
(ii) Govt. servants and others employed on deputation terms,
(iii) Persons engaged on contract basis,
(iv) Apprentices and trainees, and
(v) Reemployed persons (Reemployed person means a person employed in the Company
on attaining the age of superannuation).
PAYMENT OF GRATUITY:
(1) 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 :-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c ) on his death or disablement due to accident or disease.
Provided that the completion of continuous service of five years shall not be necessary
where the termination of the employment of any employee is due to death or disablement.
Provided further that in the 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, and where any such nominee or heir is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Calculation of Gratuity - Fifteen days wages for every completed year of service have to be calculated on the basis of wages paid to an employee for the month divided by twenty – six days and the quotient multiplied by fifteen days.
Calculation of Gratuity shall be made as under:
((Pay+DA+Personal Pay If exist) x 15 x No. of completed years of service) / 26= Gratuity (From 01.01.2007 it was increased amount from 3.5Lac to 10Lacs max. to be paid)
From India, Pune
Gratuity is a retirement benefit to be paid to the employees, usually at the time of retirement. One become eligible for gratuity after completion of 5 years of service.
formula for calculation of Gratuity is as following
Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
where 15 is considered as the half month salary and 26 is considered to be the number of working days in a month excluding 4 Sundays which you will have in most of the months.
With Regards
From India, Ranchi
formula for calculation of Gratuity is as following
Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
where 15 is considered as the half month salary and 26 is considered to be the number of working days in a month excluding 4 Sundays which you will have in most of the months.
With Regards
From India, Ranchi
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc