Hi All,
My company’s strength is 30 members as of now, shell I go for Gratuity Act? Company has started in the year 2003 May.
Can I get the information on gratuity form PF Office?
Pls help me in this.
Thanks
Anita
From India, Bangalore
2My company’s strength is 30 members as of now, shell I go for Gratuity Act? Company has started in the year 2003 May.
Can I get the information on gratuity form PF Office?
Pls help me in this.
Thanks
Anita
From India, Bangalore
HI Anitha,
Since your company started in May 2003, the employees will become applicable to get a gratuity after end of Five years of continous service.
Also tell me your organisation is registered under which act , means factory Act, Shops & establishment etc. You need to see the applicability of the act for your Organisation.
Also u can go through the Gratuity Act for additional information. PF dept will not help you in Gratuity.
Enjoy,
Harshad
From India, Mumbai
Since your company started in May 2003, the employees will become applicable to get a gratuity after end of Five years of continous service.
Also tell me your organisation is registered under which act , means factory Act, Shops & establishment etc. You need to see the applicability of the act for your Organisation.
Also u can go through the Gratuity Act for additional information. PF dept will not help you in Gratuity.
Enjoy,
Harshad
From India, Mumbai
Dear Anitha
Greetings
You have to understood the fact that Gratuity is not coming under the purview of EPF Act. It is a separate legislation applicable to all the company having more than 20 employees.
Eligibility of Gratuity will only arise only in case of resignation / termination / discharge of an employee and that too gratuity is eligible only for employee who has completed 5 years of service in a company.
It is based on 15 days salary per year of service. The max amount of Gratuity that one can get is Rs.3.5 lakhs.
More inputs i can share if you require.
Cheers
Trisha
HR Professional
From India, New Delhi
Greetings
You have to understood the fact that Gratuity is not coming under the purview of EPF Act. It is a separate legislation applicable to all the company having more than 20 employees.
Eligibility of Gratuity will only arise only in case of resignation / termination / discharge of an employee and that too gratuity is eligible only for employee who has completed 5 years of service in a company.
It is based on 15 days salary per year of service. The max amount of Gratuity that one can get is Rs.3.5 lakhs.
More inputs i can share if you require.
Cheers
Trisha
HR Professional
From India, New Delhi
Dear Anitha
There is no need to register. But there are additional benefits available with LIC of india under Group gratuity scheme which is a seperate procedure can be explained by any Business devept manager of LIC.
As regard to forms you have to buy Gratuity act book and where the model forms available at the end of act and rules.
Cheers
Trisha
HR Professional
From India, New Delhi
There is no need to register. But there are additional benefits available with LIC of india under Group gratuity scheme which is a seperate procedure can be explained by any Business devept manager of LIC.
As regard to forms you have to buy Gratuity act book and where the model forms available at the end of act and rules.
Cheers
Trisha
HR Professional
From India, New Delhi
Hi Anita,
There is no registration required for gratuity. It is mandatory from the employer to pay the gratuity @ 15 days basic + DA salary for every year of service completion. An employee becomes eligible to get the gratuity once he completes 5 years of service. Even if the employee leaves the company one day before the completion of 5 years, he is not eligible for gratuity.
To maintin this fund, you need to form a Gratuity Trust and the Directors, HR In-charge nd Accounts In-charge may become the trustees.
If you don't want the headache of starting the trust and maintain the fund etc, there are financial institutions, banks, Insurance companies are maintaining the gratuity fund on behalf of the company. You can contact them. If you need any help on good institution for maintaing the fund do let me know, I can help you out by recommending a good company.
Regards,
Umesh.S
Note: May I know your qualification? Because this is one of the act every HR person should know. There are lot of bare act books are available in the book shops with less cost (say Rs.5/- or Rs.10/- per act or combination of labour act within the cost of Rs.50 or Rs.75/-) Please make use of it. Sorry if I have hurted you by saying this.
From India, Bangalore
There is no registration required for gratuity. It is mandatory from the employer to pay the gratuity @ 15 days basic + DA salary for every year of service completion. An employee becomes eligible to get the gratuity once he completes 5 years of service. Even if the employee leaves the company one day before the completion of 5 years, he is not eligible for gratuity.
To maintin this fund, you need to form a Gratuity Trust and the Directors, HR In-charge nd Accounts In-charge may become the trustees.
If you don't want the headache of starting the trust and maintain the fund etc, there are financial institutions, banks, Insurance companies are maintaining the gratuity fund on behalf of the company. You can contact them. If you need any help on good institution for maintaing the fund do let me know, I can help you out by recommending a good company.
Regards,
Umesh.S
Note: May I know your qualification? Because this is one of the act every HR person should know. There are lot of bare act books are available in the book shops with less cost (say Rs.5/- or Rs.10/- per act or combination of labour act within the cost of Rs.50 or Rs.75/-) Please make use of it. Sorry if I have hurted you by saying this.
From India, Bangalore
Hi Trisha,
thanks for the reply, i dont have any prob in EPF, and i know Gratuity is totaly different from EPF,
actually some time back i spoke to one person, he is in gratuity dept in canara bank, and he told me the all the application form you can collect from PF office only. so i had a doubt. and i am here to clear my query.
Anita
From India, Bangalore
thanks for the reply, i dont have any prob in EPF, and i know Gratuity is totaly different from EPF,
actually some time back i spoke to one person, he is in gratuity dept in canara bank, and he told me the all the application form you can collect from PF office only. so i had a doubt. and i am here to clear my query.
Anita
From India, Bangalore
Dear Anita
Greetings!
I too agree vth umesh.
Applicability
Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees
Wages for Calculation
@ 15 days’ wages for every completed year as if the month comprises of 26 days at the last drawn wages.
Qualifying period
On rendering of 5 years’ service, either termination, resignation or retirement.
Employee
All employees irrespective of status or salary
Entitlement
On completion of five years’ service except in case of death or disablement
Nomination
To be obtained by employer after expiry of one year’s service, in Form ‘F’
Maximum Ceiling
Rs.3,50,000
Statuory Compliance Forms
S.No Type & Nature Of Document Description Of the Form
1 Form A Notice Of Opening
2 Form B Notice Of Change
3 Form C Notice Of Closure
4 Form D Notice for excluding husband from family
5 Form E Notice of withdrawal of notice for excluding husband from family
6 Form F Nomination
7 Form G Fresh Nomination
8 Form H Modification Of Nomination
9 Form I Application for gratuity by an employee
10 Form J Application for gratuity by a nominee
11 Form K Application for gratuity by a legal heir
12 Form L Notice for payment of gratuity
13 Form M Notice rejecting payment of gratuity
14 Form N Application for direction
15 Form O Notice for appearance before the controlling authority
16 Form P Summons
17 Form Q Particulars of application under Section 7
18 Form R Notice for payment of Gratuity
19 Form S Notice for payment of Gratuity as determined by appellate authority
20 Form T Application for recovery of gratuity
21 Form U Display of abstract of the act and rules
Hope this helps u to some extend
Rgds,
John N
From India, Madras
Greetings!
I too agree vth umesh.
Applicability
Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees
Wages for Calculation
@ 15 days’ wages for every completed year as if the month comprises of 26 days at the last drawn wages.
Qualifying period
On rendering of 5 years’ service, either termination, resignation or retirement.
Employee
All employees irrespective of status or salary
Entitlement
On completion of five years’ service except in case of death or disablement
Nomination
To be obtained by employer after expiry of one year’s service, in Form ‘F’
Maximum Ceiling
Rs.3,50,000
Statuory Compliance Forms
S.No Type & Nature Of Document Description Of the Form
1 Form A Notice Of Opening
2 Form B Notice Of Change
3 Form C Notice Of Closure
4 Form D Notice for excluding husband from family
5 Form E Notice of withdrawal of notice for excluding husband from family
6 Form F Nomination
7 Form G Fresh Nomination
8 Form H Modification Of Nomination
9 Form I Application for gratuity by an employee
10 Form J Application for gratuity by a nominee
11 Form K Application for gratuity by a legal heir
12 Form L Notice for payment of gratuity
13 Form M Notice rejecting payment of gratuity
14 Form N Application for direction
15 Form O Notice for appearance before the controlling authority
16 Form P Summons
17 Form Q Particulars of application under Section 7
18 Form R Notice for payment of Gratuity
19 Form S Notice for payment of Gratuity as determined by appellate authority
20 Form T Application for recovery of gratuity
21 Form U Display of abstract of the act and rules
Hope this helps u to some extend
Rgds,
John N
From India, Madras
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