PRIME SPONSOR - FACTOHR - Customised Payroll, GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
hi, Will the gratuity paid for employees who have not completed 5years will be TAX exempted? Mohandas
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hi all,
I keep observing the conversation of HR doubts
& clarification in the citehr network, its really helped me in all critical suitation , i sincerely thankful to everyone of your knowledge shared.
Here i am taking an opportunity to introduce myself as Senior HR generalist with growing an ADVERTISING company in mumbai. i have an doubt in formating payslip for our company , i would like to know is there any format for the monthly payslip. if there please share with me.
Thanks in advance. Awaiting for your valuable reply.
Rgds,
Sug
Hi friends,
5 yrs of Pvt company in the market can bring the gratuity scheme for the employee, if so kindly let me know the formula to calculate the gratuity for employees.
Thanx in advance.
sir kindly clarify the followng:-
1) if a casual employee is eligible for gratuity
2) if a regular employee expired within 5 years is he eligible for gratuity
3) if any employee resigned, removed, after 5 years are they eligible
Payment of Gratuity Act, 1972

Object: It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, and shops or other establishments.

Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.

Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.

Calculation: W x Y x 15/26 where W = Last Wage drawn i.e., basic + DA
Y = number of completed years of conyinuous service (six months or less to be ignored and more than six months to be counted as full year.
15 = 15 days salary
26 = No. of working days in a month.

Maximum Limit: Rs.3.5 lacs. (w.e.f 24-09-1997)

Time Limit for application to employer: Employee has to make an application in Form-I to his employer within 30 days from the date of gratuity becomes payable.



Whom to apply in case of non-payment by employer or dispute: Application in Form-N is to be made to the "Controlling Authority" i.e., the Assistant Labour Commissioner or the Labour-cum-Conciliation Officer of the concerned area within 90 days on the expiry of 30 days period of the employer.

Appeal: An aggrieved party can file an appeal to the Appellate Authority i.e Additional Labour Commissioner within 60 days of the decision of the Controlling Authority.
you know gratuity due after 5 year of regular service under one employer.
formula is Present basic divided by 26 ( days of month calculated as 26)
then multiply by 15 of every year . 15days salary eligible for every year after 5 year of regular service under one employer
You can use folloing formula for G. Caculation Last month basic x 15 x No.of Years of Service Completed 26
Can anyone help me, in understanding this funda:
"(After completion 5 years, upto 6 months should be counted as previous year and after 6 months to be counted as next year. For eg. 6 years 5 months to be counted as 6 years and 6 years 8 months to be counted as 8 years.)"
Mr. Anjum,
Its very simple. Its just like rounding of Paise to nearest Rupees. e.g. Rs. 5.60 would be rounded off to Rs. 6/- where as Rs. 5.40 would be rounded off to Rs. 5/-. Similarly if months are more than 6 then it would rounded off to higher side i.e. in Years 1 would be added e.g. 5 years 5 months would be rounded off to 5 years where as 5 years 8 months would be rounded off to 6 years.
Contact if need further clarifications.
Regards,
PRABHJOT S. KASHYAP
Sr. Executive - Relationship Development


<link outdated-removed> |Virka Infotech Services
Ludhiana (INDIA)|New Jersey (US)|Ontario (CANADA)|Victoria (AUSTRALIA)


Payment of Gratuity Act, 1972

Object: It is an act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, ports, railway companies, and shops or other establishments.

Applicability of the Act: Any employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.

Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous services of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.

Calculation of Gratuity Amount:
W X Y X 15 / 26 where
W = Last wage drawn i.e. basic + DA.
Y = Number of completed years of continuous service.
15 = 15 days salary.
26 = Number of working days in a month.

Maximum Limit: Rs. 3.5 lacs (w.e.f 24.09.1997)

Benefits:
1. The quantum of gratuity is to be computed at the rate of 15 days wages (07 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed years of service or a part thereof exceeding 06 months.

2. The total amount of gratuity payable shall not exceed the prescribed limit.

3. In case where higher benefit of gratuity is available under any gratuity scheme of the co., the employee will be entitled to higher benefit.

Time Limit for Application to Employer:
Employee has to make an application in Form - I to his employer within 30 days from the date the gratuity becomes payable.

Whom to apply in case of non-payment by employer or dispute:
Application in Form - N is to be made to the "Controlling Authority" i.e. the Assistant Labour Commissioner or the Labour-cum-Conciliation Officer of the concerned area within 90 days on the expiry of 30 days period of the employer.

Appeal: An aggrieved party can file an appeal to the Appellate Authority i.e. Additional Labour Commissioner within 60 days of the decision of the Controlling Authority.

Penal Provision:
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 02 years (minimum 06 months) and / or fine upto Rs. 20,000/-. Other contravention/offenses attract impprisonment up to 01 year and/or fine up to Rs.10,000.
it is (Basic Pay+DA) X 15/26 X No. of years of Services(runding off). Regards Rahul Bhardwaj
PRIME SPONSOR - TALENTEDGE "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses

Add Reply Start A New Discussion






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™