In how many days Gratuity is received, how much amount is received, how is the entire calculation?
new Delhi. Gratuity has been in trend for the past few days. The government is considering ending the five-year requirement of getting gratuity. Especially those employees who have recently started jobs, they know very little about gratuity. Many types of questions must have flashed in his mind. Like how many days gratuity is received. What is the amount received? The most important thing is how to calculate Gratuity. Let us also tell you …
Who gets gratuity payment?
According to the gratuity rules, the amount of gratuity can be up to a maximum of Rs 20 lakhs.
– For gratuity, it is mandatory for the employee to work in the same company for at least 5 years.
– Employee is not eligible for gratuity in case of short term job.
– Gratuity is not available even after leaving the job in 4 years and 11 months.
However, this rule does not apply in the event of sudden employee death or accident.
When was the Gratuity Payment Act made
– The Gratuity Payment Act came into existence in the year 1972 with the objective of protecting the interests of employees.
– Act includes mining areas, factories, oil fields, forest areas, private companies and porters where 10 or more employees work.
– Gratuity and provident fund are completely different.
– The company pays all the money in gratuity.
12 percent of the contribution to provident fund is also by the employee.
When do you get gratuity?
– Employee can apply for withdrawal of gratuity after leaving the job.
– It is paid within 30 days from the date of application.
If the company does not do so, it will have to pay interest at the rate of simple interest on the gratuity amount.
If the company does not do so, it will be held guilty of violation of the Gratuity Payment Act, 1972, in which it can be punished from 6 months to 2 years.
Gratuity is fixed in two categories
In the first category, employees who are covered under the Gratuity Payment Act 1972 and in the second category employees who do not come under the Gratuity Payment Act 1972. First thing to do for the first category, then in its formula, basic salary + dearness allowance + commission on sales (if any). In this formula, an employee is paid an average of 15 days by assuming 26 working days a month. In the last year of the job, a job above 6 months will be considered as a full year. At the same time, the basic salary + dearness allowance + commission on sales (if any) in the formula of gratuity of employees who do not come under the Act. In the formula, an employee is paid an average of 15 days, assuming 30 working days in a month.
Calculation of gratuity on death
In case of death during the job, gratuity is paid based on the duration of the job. Where the maximum amount available is up to 20 lakh rupees. If the job is less than one year, you get double the basic salary. Those whose jobs are more than one year and less than five are paid six times the basic salary. If the job is more than 5 years but less than 11 years, you will get 12 times the basic salary. For more than 11 years but less than 20 years, 20 times the basic salary will be given. At the same time, if the job is more than 20 years, half of the basic salary will be given for every six months.