Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
It is usually given in monetary terms at the time of retirement. However, pursuant to certain rules of the by the Payment of gratuity act 1972, an employee eligible to receive gratuity before the age of retirement or superannuation.
The last drawn salary * 15/26 * number of years of service rendered Note following:
Gratuity is governed by the Payment of gratuity act 1972, the act is applicable to the following, set up/business/enterprise employer’s who are employing more than 10 workmen:
Note: However in case of Death, of the accident, or Long disease, it is paid before irrespective of the continuous period requirement for the company.
Note: If the Nominee is a minor, in that case, the Assistant labor commissioner shall deposit the money and invest it with a nationalized bank or State bank of India (SBI).
Relaxation in counting continuous period as given below:
Let’s understand this 240 day makes a year in 6 days working company, however in 5 days working organization 190 days makes one year, in such a case a person shall be eligible for 5 years continuous period although in actuality it is 4 years 190 days only.
Relaxation considered is like if an employee works for 4 years and 11 months, the employee will be eligible for gratuity. On the other hand, if the employee has worked for 4 years and 5 months, it is treated as less than 5 years and no gratuity will be paid.
Continuous service has been defined as uninterrupted service. But, it shall not include the following:
2. Salary means and includes only two components that are Basic plus Dearness allowance plus Commission:
There are two cases as given below:
On application being made by the nominee, certain evidence of being nominee can be sought; the date for the reply of same by the employer shall be counted from the date of acceptance of the evidence or claims made by the employer.
In case of any complaint or grievance, a complaint can be filed with the assistant labor commissioner within 90 days of such event.
Application to be made in Form N
In certain cases, the gratuity can be forfeited let’s say where the employee’s services have been terminated due to his misconduct or negligence which has caused damage to the employer.
However, even if the company becomes bank corrupt, it can’t deny the right of gratuity to the eligible employee, i.e. even in that case, the gratuity amount cannot be attached by the court.
The insurance industry is on the edge of a transformative era. As we enter 2024, technological...
The Indian Cybercrime Coordination Centre reported a rise in digital financial fraud, which has...
During its 203rd meeting on 25th November 2023, the Securities and Exchange Board of India (SEB...
If you want to expand your portfolio beyond standard stocks and bonds, Alternative Investment F...
NBFCs in India encounter significant challenges related to the compounded effects of outstandin...
Are you human?: 1 + 6 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Considering this situation, the Central Government can amend this Public Gambling Act and draft model rules under i...
11 Dec, 2020
What is your perspective about education? The common answer given by everyone is that it is a way through which a p...
19 Aug, 2019