HI,
Is there any salary limit in the definition of Employee for Gratuity ? For example, if any one, who is drawing more than Rs. 6,500 are not eligible to get PF and they are not covered under PF Act.
I would like to know whether there is any such limit restricting the applicability of Gratuity ?
From India, Tiruchchirappalli
Is there any salary limit in the definition of Employee for Gratuity ? For example, if any one, who is drawing more than Rs. 6,500 are not eligible to get PF and they are not covered under PF Act.
I would like to know whether there is any such limit restricting the applicability of Gratuity ?
From India, Tiruchchirappalli
Dear Mr.Radhakrishnan
Section 2(s) of the Payment of Gratuity Act defines the term "wages". This definition does not put any ceiling on the quantum of wages that could be reckoned for calculating gratuity. But if you see section 4(3) of the PG Act it says that the maximum amount of gratuity payable cannot exceed Rs.10 lakhs. So there is an indirect ceiling on the wages by restricting the maximum amount of gratuity payable.
From India, Madras
169Section 2(s) of the Payment of Gratuity Act defines the term "wages". This definition does not put any ceiling on the quantum of wages that could be reckoned for calculating gratuity. But if you see section 4(3) of the PG Act it says that the maximum amount of gratuity payable cannot exceed Rs.10 lakhs. So there is an indirect ceiling on the wages by restricting the maximum amount of gratuity payable.
From India, Madras
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc