Gratuity is that part of the salary of an employee when he received to employer.

When leaving job.

The payment of Gratuity act, 1972.means any person employed on wages in any establishment factory,mine, oilfield, plantation, port, railway company or shop or establishment in state which 10 or more persons are employed on any day of the preceding 12 months.

Central Government- such other establishment or class of establishment in which 10 or more employees are employed on day preceding 12 months

How to Claim Gratuity

It shall come force on such data as the Central Government may, by notification

Gratuity means Gift or Token of employer

Payment of Gratuity

If he completed 5 year of continuous services

(A) Superannuation

(B) Resignation

(C) Retirement

(D) On this death or disablement to accident or disease shall not necessary where the termination of the employment of any employee is due to death or disablement. Provided further in case of death of the employee Gratuity payable to him shall be paid to his nominee or nomination has been made to heirs is minor. The share off such minor shall be deposited with the Controlling Authority who shall invest the same for the benefit other financial institution as may be prescribed attains majority.

Compulsory Insurance

(1) all the employers must an insurance from the Life Insurance Corporation or any other prescribed their liability of payment of Gratuity

(2) if the employee ha already established an approved gratuity fund he maybe exempt from section (1)

(3) the employer shall get company registered with the Controlling Authority within time

(4) appointment of the Bord of trustees by the appropriate government

(5) every employer shall be liable to pay the contribution by way of premium to approve gratuity fund

Nomination

(1) the employee must appoint a nominee

(2) the employee can distribute the gratuity in more than one nominee

(3) if the employee has a family then he should nominate any of the family members and not a outsider

(4) nomination can modify and when by the employee

(5) if the nominee the employee he has to make a fresh nomination

(6) every change in the nomination has to be employer which must be kept in a safe custody .

Gratuity Claim

(A) A person eligible for gratuity shall give in writing to the employer

(B) The employer shall determine the amount of gratuity and give a notice in writing to employee to receive the gratuity when due.

(C) The employer shall the make the Gratuity payment within 30 days to due.

(D) Amount is not paid during the specified time by the employer, he shall pay a simple interest for the delayed time at rate as the government,

(E) any dispute regarding amount of gratuity or the person receiving Gratuity shall be paid the Controlling Authority.

(F) any aggrieved party can make an appeal to the appropriate government within 60 days from receipt of orders.

Appointment power of Inspector- appropriate government can appoint as enquiry. The have the power to conduct investigation collect evidence require to produce the copies.

Recovery of Gratuity

The controlling authority on application from the aggrieved party issue a Certificate to the collector to recover the amount of Gratuity payable from the employer along with the compound interest.

Penalties

Making false statements or false representation- Imprisonment 6 months

Fine upto 10,000 or both

Any contravention of provision by employer

Imprisonment 6 months

Fine upto 20,000 or both

Income tax on gratuity received

The gratuity received by any government employee wholly exempt

AMENDMENTS as 2018

Incase of Government servants the upper ceiling on gratuity has been increased from 10 lakhs to 20 lakhs.

Considering inflation wages increase of employees of private sector maximum extent 20 lakhs.

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In case any requirement related to Actuarial valuations in compliance of AS 15 (Revised 2005)/IndAS 19/IAS 19. In case of more details in the above matter you may contact me at 9716647377 or rajeshkumar9716@gmail.com

Author Bio

Qualification: Graduate
Company: Gratuity Trust Fund Consultant
Location: NEW DELHI, Delhi, India
Member Since: 03 Nov 2019 | Total Posts: 2
Rajesh Kumar Gratuity Trust Fund Consultant Actuarial valuations and Income tax View Full Profile

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12 Comments

  1. harsh rattan says:

    I worked 7yrs and 9 months with a central gov. unit on third party yearly contract basis with same contractor. I resigned there in march 2019 due to contract change. so after 4 years am I eligible to claim gratuity from employer

  2. Mihir Panchal says:

    Many professors who raise complaints legally, they got it. I have applied 2-3 times. But they are not responding to my application.

  3. Tejprakash sharma says:

    सर मैं हिंडौन सिटी करोली राजस्थान का रहने वाला हु और मेरे पापा नंदेसरी बड़ोदरा गुजरात मैं एक कंपनी मैं सिक्योरिटी गार्ड का काम करते थे वो एक सिक्योरिटी एजेंसी के थ्रू उस कम्पनी में lge हुए थे उनको उस एजेंसी मै काम करते हुए 5 साल से ज्यादा हो गए थी और ऑन ड्यूटी ही कम्पनी में डेथ हो गई उनका पीएफ भी काटता था तो क्या उनकी gratuity मिल सकती हैं

    1. Ashok kr sharma- Adv says:

      Mr.Tej praksh sharma you are entitled to receive gratuity as an legal heirs but you have to produce relevant record of employment in which your father was engage. if you have any further clarification you can call me on 8076682781

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