Providing and Paying Gratuity to your employees

Object:


Payment of Gratuity Act, 1972 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.
It may be explained as :
(Basic Pay +DA) X 15/26 X No. of years of Services(rounding off).
Maximum Limit: Rs. 10 Lacs (enhanced on 24.05.2010)

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/-.

How can we calculate the Provision for Gratutity?

As per AS-15, A Actuary has to be appointed to do the valuation. The elaborate extract can be found here

89 Comments
  1. Just wanna input that you have a very decent web site , I love the design it really stands out.

  2. I was suggested this web site by my cousin. I am not sure whether this post is written by him as no one else know such detailed about my difficulty. You are incredible! Thanks!

  3. Normally I do not learn article on blogs, but I would like to say that this write-up very pressured me to try and do it! Your writing style has been surprised me. Thanks, quite nice post.

  4. You are my intake , I own few blogs and rarely run out from to brand.I conceive this internet site contains some real wonderful information for everyone. “In this world second thoughts, it seems, are best.” by Euripides.

  5. I have learn several just right stuff here. Definitely price bookmarking for revisiting. I wonder how much attempt you place to create this type of great informative web site.

  6. Real good information can be found on website . “Every obstacle yields to stern resolve.” by Leonardo DaVinci.

  7. It’s actually a great and helpful piece of information. I’m glad that you shared this useful information with us. Please stay us informed like this. Thanks for sharing.

  8. Heya i am for the first time here. I came across this board and I find It truly useful & it helped me out a lot. I hope to give something back and aid others like you helped me.

  9. Heya i’m for the first time here. I found this board and I find It truly useful & it helped me out much. I hope to give something back and aid others like you aided me.

  10. Some genuinely wonderful posts on this website , thankyou for contribution.

  11. Hello my friend! I wish to say that this post is amazing, great written and come with almost all significant infos. I’d like to see extra posts like this.

  12. I have not checked in here for a while since I thought it was getting boring, but the last few posts are great quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

  13. I truly appreciate this post. I’ve been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thx again!

  14. seo 1 year ago

    Hello Web Admin, I noticed that your On-Page SEO is is missing a few factors, for one you do not use all three H tags in your post, also I notice that you are not using bold or italics properly in your SEO optimization. On-Page SEO means more now than ever since the new Google update: Panda. No longer are backlinks and simply pinging or sending out a RSS feed the key to getting Google PageRank or Alexa Rankings, You now NEED On-Page SEO. So what is good On-Page SEO?First your keyword must appear in the title.Then it must appear in the URL.You have to optimize your keyword and make sure that it has a nice keyword density of 3-5% in your article with relevant LSI (Latent Semantic Indexing). Then you should spread all H1,H2,H3 tags in your article.Your Keyword should appear in your first paragraph and in the last sentence of the page. You should have relevant usage of Bold and italics of your keyword.There should be one internal link to a page on your blog and you should have one image with an alt tag that has your keyword….wait there’s even more Now what if i told you there was a simple WordPress plugin that does all the On-Page SEO, and automatically for you? That’s right AUTOMATICALLY, just watch this 4minute video for more information at. Seo Plugin

  15. http://angielski.cf 1 year ago

    I enjoy the efforts you have put in this, appreciate it for all the great posts.

  16. http://angielski.cf 1 year ago

    I’ve recently started a website, the info you provide on this web site has helped me greatly. Thanks for all of your time & work.

  17. http://angielski.gq 1 year ago

    Thank you for the good writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! However, how can we communicate?

  18. sluzebnosc przesylu 1 year ago

    Wow, marvelous blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your site is fantastic, as well as the content!

  19. sluzebnosc przesylu 1 year ago

    I have read a few just right stuff here. Definitely price bookmarking for revisiting. I wonder how a lot attempt you place to make the sort of wonderful informative web site.

  20. I got what you mean , thankyou for putting up.Woh I am lucky to find this website through google. “Don’t be afraid of opposition. Remember, a kite rises against not with the wind.” by Hamilton Mabie.

  21. What i do not understood is in reality how you are not really much more neatly-favored than you may be now. You’re so intelligent. You realize thus considerably in terms of this subject, produced me personally imagine it from numerous various angles. Its like women and men aren’t involved except it is something to do with Lady gaga! Your own stuffs great. At all times handle it up!

  22. I simply wished to say thanks again. I do not know the things I might have sorted out without the strategies shown by you concerning my theme. It was actually the frustrating problem in my view, nevertheless seeing a new expert strategy you solved the issue took me to cry for joy. Extremely thankful for the information as well as sincerely hope you comprehend what a great job that you’re getting into educating men and women using your web page. Most probably you have never met any of us.

  23. Keep up the wonderful work , I read few content on this web site and I conceive that your blog is rattling interesting and contains lots of excellent information.

  24. Just a smiling visitor here to share the love (:, btw great design. “The price one pays for pursuing a profession, or calling, is an intimate knowledge of its ugly side.” by James Arthur Baldwin.

  25. I dugg some of you post as I thought they were handy extremely helpful

  26. Very interesting information!Perfect just what I was searching for! “Justice delayed is justice denied.” by William Gladstone.

  27. erectie krijgen 1 year ago

    Great – I should definitely pronounce, impressed with your site. I had no trouble navigating through all tabs as well as related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your customer to communicate. Nice task.

  28. A person necessarily assist to make critically articles I might state. That is the first time I frequented your web page and up to now? I surprised with the research you made to make this actual post incredible. Excellent process!

  29. http://drukuv.cf 1 year ago

    I gotta favorite this website it seems handy very useful

  30. http://drukuv.gq 1 year ago

    I conceive you have noted some very interesting points , appreciate it for the post.

  31. betere erectie 1 year ago

    I’ve been surfing online greater than three hours lately, but I by no means discovered any interesting article like yours. It is beautiful value enough for me. In my opinion, if all site owners and bloggers made just right content as you did, the web will likely be a lot more useful than ever before. “Oh, that way madness lies let me shun that.” by William Shakespeare.

  32. I consider something truly special in this site.

  33. Hello, you used to write magnificent, but the last several posts have been kinda boring… I miss your tremendous writings. Past several posts are just a little out of track! come on!

  34. sdorttuii plmnr 1 year ago

    It?¦s really a cool and useful piece of information. I?¦m glad that you simply shared this useful info with us. Please keep us informed like this. Thank you for sharing.

  35. Good – I should definitely pronounce, impressed with your site. I had no trouble navigating through all the tabs and related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your client to communicate. Excellent task.

  36. Hi, Neat post. There’s an issue along with your site in web explorer, may check this… IE nonetheless is the marketplace leader and a big section of people will pass over your great writing due to this problem.

  37. Thank you for sharing excellent informations. Your site is so cool. I’m impressed by the details that you’ve on this blog. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my pal, ROCK! I found just the information I already searched all over the place and just couldn’t come across. What an ideal web-site.

  38. Unquestionably believe that which you stated. Your favorite reason seemed to be on the net the simplest thing to be aware of. I say to you, I definitely get annoyed while people think about worries that they just do not know about. You managed to hit the nail upon the top and defined out the whole thing without having side-effects , people can take a signal. Will likely be back to get more. Thanks

  39. I gotta bookmark this web site it seems extremely helpful very useful

  40. Some truly quality blog posts on this internet site , saved to favorites .

  41. Just a smiling visitant here to share the love (:, btw outstanding design and style. “Reading well is one of the great pleasures that solitude can afford you.” by Harold Bloom.

  42. What i do not realize is in fact how you’re no longer really much more well-liked than you might be right now. You’re very intelligent. You understand therefore significantly in the case of this topic, made me for my part imagine it from numerous numerous angles. Its like women and men don’t seem to be interested except it is something to accomplish with Girl gaga! Your individual stuffs great. All the time take care of it up!

  43. obróbka metali 1 year ago

    Merely a smiling visitant here to share the love (:, btw great layout.

  44. I just couldn’t leave your website before suggesting that I really enjoyed the standard information an individual provide for your visitors? Is going to be again often in order to check up on new posts.

  45. I was looking at some of your content on this website and I conceive this website is really informative! Keep posting.

  46. Hey There. I found your blog using msn. This is a very well written article. I’ll make sure to bookmark it and return to read more of your useful info. Thanks for the post. I will certainly comeback.

  47. Hello, you used to write magnificent, but the last few posts have been kinda boring… I miss your super writings. Past several posts are just a bit out of track! come on!

  48. Only a smiling visitor here to share the love (:, btw great pattern .

  49. great points altogether, you simply won a new reader. What could you suggest in regards to your publish that you simply made a few days ago? Any sure?

  50. Simply a smiling visitant here to share the love (:, btw outstanding style .

  51. I do trust all the ideas you’ve introduced for your post. They’re really convincing and will definitely work. Nonetheless, the posts are very short for beginners. May you please extend them a little from subsequent time? Thank you for the post.

  52. I’ve been surfing on-line more than three hours today, but I never found any attention-grabbing article like yours. It is pretty worth sufficient for me. In my view, if all web owners and bloggers made good content material as you did, the web shall be much more useful than ever before. “I finally realized that being grateful to my body was key to giving more love to myself.” by Oprah Winfrey.

  53. seo plugin 1 year ago

    Hello Web Admin, I noticed that your On-Page SEO is is missing a few factors, for one you do not use all three H tags in your post, also I notice that you are not using bold or italics properly in your SEO optimization. On-Page SEO means more now than ever since the new Google update: Panda. No longer are backlinks and simply pinging or sending out a RSS feed the key to getting Google PageRank or Alexa Rankings, You now NEED On-Page SEO. So what is good On-Page SEO?First your keyword must appear in the title.Then it must appear in the URL.You have to optimize your keyword and make sure that it has a nice keyword density of 3-5% in your article with relevant LSI (Latent Semantic Indexing). Then you should spread all H1,H2,H3 tags in your article.Your Keyword should appear in your first paragraph and in the last sentence of the page. You should have relevant usage of Bold and italics of your keyword.There should be one internal link to a page on your blog and you should have one image with an alt tag that has your keyword….wait there’s even more Now what if i told you there was a simple WordPress plugin that does all the On-Page SEO, and automatically for you? That’s right AUTOMATICALLY, just watch this 4minute video for more information at. Seo Plugin

  54. Thank you so much for giving everyone an exceptionally superb opportunity to read critical reviews from this site. It is often so useful plus packed with a lot of fun for me personally and my office mates to visit your website at least thrice in 7 days to see the fresh guides you have. And of course, I am just certainly contented for the astounding suggestions served by you. Selected 4 ideas in this article are essentially the most suitable I’ve ever had.

  55. F*ckin’ remarkable things here. I am very happy to peer your post. Thanks so much and i am looking forward to contact you. Will you please drop me a mail?

  56. http://www.duecuochiadomicilio.it Woolrich Parka Outlet
    Woolrich Parka Uomo Outlet http://www.duecuochiadomicilio.it

  57. 239Au.cn 1 year ago

    Do you have a spam problem on this blog; I also am a blogger,
    and I was wondering your situation; we have developed some nice methods and we
    are looking to trade techniques with others, be sure
    to shoot me an e-mail if interested.

  58. crork service 1 year ago

    78SIGV Thank you for your blog post.Really thank you! Fantastic.

  59. agrandir son pénis 1 year ago

    Merely wanna input on few general things, The website style is perfect, the content material is really excellent : D.

  60. Thank you a lot for giving everyone an exceptionally wonderful opportunity to read articles and blog posts from this website. It really is very cool and also packed with fun for me personally and my office acquaintances to search the blog not less than three times in 7 days to learn the latest tips you have. And lastly, I am also actually contented with your breathtaking guidelines you serve. Certain 1 points in this article are completely the best we’ve had.

  61. koqchgqojm 1 year ago

    Providing and Paying Gratuity to your employees | Blog ReachAccountant
    [url=http://www.g1989xguwpg5sd670nxv5i9003l3xd97s.org/]ukoqchgqojm[/url]
    akoqchgqojm
    koqchgqojm http://www.g1989xguwpg5sd670nxv5i9003l3xd97s.org/

  62. Isidra 1 year ago

    the|there is a solution granted within the ARC Zone. |there supplied is a citation inside

    My weblog; personal injury law (Isidra)

  63. clean compered 1 year ago

    Howdy! I know this is kinda off topic but I was wondering
    which blog platform are you using for this website?
    I’m getting fed up of WordPress because I’ve had
    problems with hackers and I’m looking at options for another platform.
    I would be awesome if you could point me in the direction of a good platform.

  64. http://sitewire.eu/ 1 year ago

    I definitely wanted to write down a simple remark in order to thank you for some of the superb suggestions you are giving at this site. My considerable internet investigation has finally been rewarded with pleasant information to write about with my co-workers. I would tell you that many of us site visitors actually are rather lucky to exist in a perfect network with very many perfect individuals with beneficial tips and hints. I feel really fortunate to have seen your web page and look forward to many more cool times reading here. Thanks a lot once more for everything.

  65. http://lib-tech.cf 1 year ago

    I’ve been surfing online more than 3 hours lately, yet I never discovered any interesting article like yours. It is beautiful price sufficient for me. Personally, if all webmasters and bloggers made excellent content as you did, the internet shall be much more useful than ever before. “It’s all right to have butterflies in your stomach. Just get them to fly in formation.” by Dr. Rob Gilbert.

  66. F*ckin’ awesome things here. I am very glad to look your post. Thanks so much and i am looking ahead to touch you. Will you kindly drop me a mail?

  67. http://sitewire.eu/ 1 year ago

    I do agree with all the concepts you have introduced for your post. They’re really convincing and will definitely work. Nonetheless, the posts are very short for beginners. Could you please prolong them a little from subsequent time? Thank you for the post.

  68. I have recently started a blog, the information you provide on this web site has helped me tremendously. Thanks for all of your time & work. “Patriotism is often an arbitrary veneration of real estate above principles.” by George Jean Nathan.

  69. I wanted to construct a quick comment to thank you for those wonderful recommendations you are showing on this website. My time intensive internet research has at the end of the day been paid with pleasant concept to exchange with my two friends. I would admit that many of us website visitors actually are really endowed to be in a decent site with many perfect individuals with beneficial techniques. I feel pretty happy to have come across your webpages and look forward to tons of more amazing times reading here. Thank you once more for a lot of things.

  70. Some really superb blog posts on this internet site, thanks for contribution. “The spirit is the true self.” by Marcus Tullius Cicero.

  71. I have been absent for a while, but now I remember why I used to love this website. Thanks, I will try and check back more frequently. How frequently you update your web site?

  72. I like this web site so much, bookmarked. “American soldiers must be turned into lambs and eating them is tolerated.” by Muammar Qaddafi.

  73. adwokat w gliwicach 1 year ago

    I just could not go away your site before suggesting that I actually enjoyed the standard information a person provide to your guests? Is going to be back regularly to check out new posts.

  74. It’s really a great and helpful piece of info. I am glad that you simply shared this useful information with us. Please stay us informed like this. Thanks for sharing.

  75. I like what you guys are up also. Such intelligent work and reporting! Keep up the excellent works guys I have incorporated you guys to my blogroll. I think it’ll improve the value of my site :).

  76. It is in reality a great and useful piece of information. I am satisfied that you just shared this useful info with us. Please keep us up to date like this. Thank you for sharing.

  77. spider profit 1 year ago

    You made some decent points there. I checked on the net for additional information about the issue and found most
    individuals will go along with your views on this site.

  78. Hi, i think that i saw you visited my website so i came to “return the favor”.I’m trying to find things to improve my web site!I suppose its ok to use a few of your ideas!!

  79. google.co.uk 1 year ago

    Absolutely free themes who are seeking the financial support inside
    economical urgent, it is the greatest rescuer!

    Here is my web site – google.co.uk

  80. miibeian.gov.cn 1 year ago

    For those who cosigner isn’t going to you won’t get approved.

    My website; miibeian.gov.cn

  81. Thank you for sharing excellent informations. Your web-site is very cool. I am impressed by the details that you have on this blog. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found just the information I already searched all over the place and simply couldn’t come across. What a great web-site.

  82. Thank you for the sensible critique. Me & my neighbor were just preparing to do some research about this. We got a grab a book from our area library but I think I learned more clear from this post. I’m very glad to see such great info being shared freely out there.

  83. sourceforge.net 1 year ago

    For many people, this makes extra sense compared to having each partner credit
    broken by a bankruptcy filing;.

    My blog post – sourceforge.net

  84. statcounter.com 1 year ago

    As a result, possibly be regular inside repayment
    from the money can help you meet with benefits associated with these loans

    Feel free to visit my homepage … statcounter.com

  85. feedburner.com 1 year ago

    In the interests of simplicity and common sense,
    we are going to assume that the beginning student will certainly
    attend a residential area college.

    Feel free to surf to my homepage; feedburner.com

  86. Great – I should certainly pronounce, impressed with your website. I had no trouble navigating through all the tabs and related info ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your customer to communicate. Excellent task.

  87. Absolutely written content material, regards for information. “Necessity is the mother of taking chances.” by Mark Twain.

  88. Very interesting information!Perfect just what I was looking for! “…obstacles do not exist to be surrendered to, but only to be broken.” by Adolf Hitler.

Leave a reply

Your email address will not be published. Required fields are marked *

*

Log in with your credentials

Forgot your details?