Hi, sailu
Applicable
Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
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.
Any establishment employing 10 or more persons as may be notified by the Central Government.
Once Act applies, it continues to apply even if employment strength falls below 10.
Eligibility
Any person employed on wages/salary, At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years, In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
Benefits
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. The total amount of gratuity payable shall not exceed the prescribed limit. 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:icon1:
1. Gratuity = Monthly Salary 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)
[With intimidate effect = w.e.f]
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.
Regards
shaktiraj:icon1:
From India, Mumbai
Applicable
Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
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.
Any establishment employing 10 or more persons as may be notified by the Central Government.
Once Act applies, it continues to apply even if employment strength falls below 10.
Eligibility
Any person employed on wages/salary, At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years, In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
Benefits
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. The total amount of gratuity payable shall not exceed the prescribed limit. 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:icon1:
1. Gratuity = Monthly Salary 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)
[With intimidate effect = w.e.f]
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.
Regards
shaktiraj:icon1:
From India, Mumbai
Hi Sailu, Please herewith find the attached file of gratuity calculation. Warmest Regards, Mohan.M.S
From India, Madras
28From India, Madras
Hay Gratuity = basic Salary/26 x 15 days x No. of service years Max. Gratuity payable is Rs. 3,50,000/-
From India, Indore
From India, Indore
Hi MohanMS,
I appreciate your efforts for preparing the Gratuity PPT.
In your slide No:06:There should slight change in the point No:02.
When employee is in his 5th year and if he completes 240 days,then employee is not entittled for gratuity.
Once the employee completes 05 years and 240 days, then is entittled for 06 years Gratuity.
Regards,
Nimish Joshi
9969526325
From India, Mumbai
I appreciate your efforts for preparing the Gratuity PPT.
In your slide No:06:There should slight change in the point No:02.
When employee is in his 5th year and if he completes 240 days,then employee is not entittled for gratuity.
Once the employee completes 05 years and 240 days, then is entittled for 06 years Gratuity.
Regards,
Nimish Joshi
9969526325
From India, Mumbai
Dear friend, Now I came across a typical issue, That is one of my employee left the services short of 3 dyas to complete 5 years (18.11.03 to 15.11.08).Does he eligible for gratuity. Please advise
From India, Tiruppur
From India, Tiruppur
Gratuity Calculation is simple
(Basic Salary + DA )/26 x 15 x No. of Years in service.
Point to Note:
if Service less than 5 ½ and service completed for 5 years than Gratuity will be applicable for 5 years.
Less than 5 years – Gratuity not applicable.
Anuz
(Basic Salary + DA )/26 x 15 x No. of Years in service.
- DA is optional, if applicable
- 26 = No. of work days in a month
- 15 = 15 days
- No. of years in Service, usually its 5 years but also depends upon co. policy.
Point to Note:
- Gratuity is Applicable after completion of five (5) years in service.
- If any employee :
if Service less than 5 ½ and service completed for 5 years than Gratuity will be applicable for 5 years.
Less than 5 years – Gratuity not applicable.
Anuz
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc