In a Pvt Ltd Company, Director who is drawing salary for last 21 years, Is he eligible for Gratuity? Company is having more than 10 employees. What is minimum & maximum gratuity can be paid? Arun
From India, Mumbai
From India, Mumbai
Dear Arun,
There is no Minimum/ Maximum limit of gratuity.
you need to calculate the gratuity amount as per the formula mentioned below -
(Basic+DA / 26) * 15 * No. of completed years of services.
The ceiling value for the tax purpose is 10,00,000/-.
From India, Kota
137There is no Minimum/ Maximum limit of gratuity.
you need to calculate the gratuity amount as per the formula mentioned below -
(Basic+DA / 26) * 15 * No. of completed years of services.
The ceiling value for the tax purpose is 10,00,000/-.
From India, Kota
Gratuity Act though promulgated through enactments, it is being griped by the Employer. To tell you lawfully, the Act is not giving 100% clarity to anyone, of course, I feel including the law makers. The Act says that any employee, who has completed FIVE Continuos services in the same organization is only eligible for Gratuity. Intermittent or interrupted and discontinued and joined back the same organization are not entitled to be the recipient of Gratuity. From the completion of Five Years of service to the end of service by an employee, the Gratuity amount to be payable to be calculated. 15 days latest Basic and DA are the parameters for the calculation to arrive at the amount in final to Gratuity. If an employee though completed Five and above, he may not be eligible to receive Gratuity owing to various reasons such as, Fradulent Service, Continyuous absence without information to employer, insubordiantion, sabotage, intentional creation of trouble in the orgaization, unwanted union activities and any other matters violating the harmonious relationship are considered as serious offence as per the Model Standing Orders Act.
If an employee is holding a clean chit may be paid without any reservation.
Less than five years of, even excellent services, will not be eligible for gratuity, even one month or lesser than it.
The Gratuity payment is not restricted to cadres but it for all.
On the whole Gratuity is an appreciation of the meritorious, honest, sincere, continuous services etc., of an employee by the Employer.
Hope my narration to this effect is clear to you.
Best wishes,
From India, Pune
If an employee is holding a clean chit may be paid without any reservation.
Less than five years of, even excellent services, will not be eligible for gratuity, even one month or lesser than it.
The Gratuity payment is not restricted to cadres but it for all.
On the whole Gratuity is an appreciation of the meritorious, honest, sincere, continuous services etc., of an employee by the Employer.
Hope my narration to this effect is clear to you.
Best wishes,
From India, Pune
Dear Mr. Arun, You have asked about the director who is in the company for last 21 years. If he is an employee i.e. paid director then he is eligible for gratuity payment as explained. Savita
I want to ask you seniors a question. What if an employee joins a Company on 1st Jan 2010. The Company covers the employees for Gratuity on 01 Jan 2012. Which date will be calculated? And what about the years of honest service that the employee hs given ?For this particular employee, will the gratuity start from 2010 or 2012?
Seniors, please answer my question.
From India, Mumbai
Seniors, please answer my question.
From India, Mumbai
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