Can any body suggest that gratuity can we deduct on monthly basis? If yes then give your suggestion with this example. basic 15000 then monthly how much i deduct gratuity amount?
From India, Surat
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3From India, Surat
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First and foremost, you cannot deduct gratuity from employee pay. Gratuity is an employer liability. To make provision for it, set aside a small amount on a monthly basis as your liability. Payment of gratuity arises only in certain contingencies, and it is entirely the employer's responsibility.
From India, Pune
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From India, Pune
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In continuation of the reply of Mr. Rao, it is to be emphasized that as gratuity is a one-time terminal benefit payable in a lump sum to an employee by the employer on his termination of employment other than dismissal, no contribution is required to be made by the employee. Therefore, the employer should not make any periodical deduction from the salary of the employee for this purpose. That's why it is made compulsory under Section 4-A (1) of the Payment of Gratuity Act, 1972, that the employer should take up a Group Gratuity Insurance policy with the LIC of India on his own in respect of all his employees.
From India, Salem
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From India, Salem
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
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