GRATUITY

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GRATUITY : 

GRATUITY PRESENTER BUDDHAYAN P.

MEANING : 

MEANING Gratuity is retirement benefits. It is generally payable at the time of cessation of employment and on the basis of duration of service.

Extent and Application : 

Extent and Application It extends to the whole of India Applicable to : every factory, mine, oilfield , plantation, port and railway company Every shop or establishment in which 10 or more person are employed, or were employed, on any day of the preceding twelve month

Definitions : 

Definitions Sec.22(e) “employee” means any person employed to do any skilled, semi skilled or unskilled, manual, supervisory, technical or clerical work It does not include an apprentice. Sec 22(s) “wages” includes dearness allowance but does not include any bonus, commission, HRA, overtime wages and any other allowance.

How to calculate the Amount of Gratuity Covered under GRATUITY ACT 1972, Sec 10(1)(ii) : 

How to calculate the Amount of Gratuity Covered under GRATUITY ACT 1972, Sec 10(1)(ii) Monthly rated employee: 1) At the rate of 15 days wages based on the rate of wages last drawn by the employee concerned Formula : Last Drawn wages *15days* no of completed year of service/26 Seasonal Establishment: At the rate of seven days wages for each season 2)Maximum Limit Rs. 350000/- 3) Actual gratuity received . Minimum of above three would be EXEMPTED.

Not covered in the Act: : 

Not covered in the Act: For employees not covered in the act Rs. 3,50,000 Half months averege salary for each completed year of service. Gratuity actually received Minimum of above three would be EXEMPT.

How to determine Avg. Monthly Salary: : 

How to determine Avg. Monthly Salary: Average monthly salary is calculated on the basis of avg. salary for ten months immediately preceding the month in which the employee is retired. Salary for this purpose is the basic salary. It includes basic + D.A. It also include commission, if commission is payable at a fixed percentage of turnover achieved by an employee.

THANK YOU : 

THANK YOU

UPLOADED BYABHISHEK VARSHNEY (AV) : 

UPLOADED BYABHISHEK VARSHNEY (AV)

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