Gratuity formula

Job hopping may lead to increase in your salary pay package, but staying on with your employer for long has its own benefits. Gratuity is one those benefits. Those who understand gratuity restrict themselves from shifting job in the 4 th year of continuous service and if at all they decide to move, forgone gratuity becomes a point of negotiation between new employer and employee. This article is about Gratuity, gratuity calculation, taxation and other important points related to it. What is Gratuity? Gratuity is a defined benefit scheme and mandatory payment b an employer covered under payment of gratuity act 1972. This act states that every establishment which has or had employed 10 or more persons on the payrolls on any day of preceding 12 months, has to show gratitude to its employee who has rendered at least 5 years of continuous service by paying a Gratuity amount as per the gratuity calculation formula specified under this act. An establishment which does not cover under this act may also pay gratuity. When is gratuity payable? Gratuity becomes payable on Retirement, Resignation, termination, retrenchment, death or disablement. In case of death or disability, the condition of 5-year continuous service is waived off. In this case, even if someone has worked for 1 year, his/her nominee will be paid gratuity. Gratuity is a kind of Thanksgiving from employer to employee. Here continuous service includes all approved leaves, weekly offs, legal strike etc. It means that if...

"The wage used as a basis for calculating the end of service gratuity shall not include payments made to the worker in reimbursements, housing, transport and travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social services, and any other bonuses or allowances." a - If he or she is dismissed from service for any of the reasons set forth in Article 120 or if he or she quitsemployment in view of avoiding the dismissal in accordance with the article. (This article deals with dismissal during or at end of probation, or due to charges of material loss, failure to perform basic duties even after a warning, interrogation, crime etc.)

Job hopping may lead to increase in your salary pay package, but staying on with your employer for long has its own benefits. Gratuity is one those benefits. Those who understand gratuity restrict themselves from shifting job in the 4 th year of continuous service and if at all they decide to move, forgone gratuity becomes a point of negotiation between new employer and employee. This article is about Gratuity, gratuity calculation, taxation and other important points related to it. What is Gratuity? Gratuity is a defined benefit scheme and mandatory payment b an employer covered under payment of gratuity act 1972. This act states that every establishment which has or had employed 10 or more persons on the payrolls on any day of preceding 12 months, has to show gratitude to its employee who has rendered at least 5 years of continuous service by paying a Gratuity amount as per the gratuity calculation formula specified under this act. An establishment which does not cover under this act may also pay gratuity. When is gratuity payable? Gratuity becomes payable on Retirement, Resignation, termination, retrenchment, death or disablement. In case of death or disability, the condition of 5-year continuous service is waived off. In this case, even if someone has worked for 1 year, his/her nominee will be paid gratuity. Gratuity is a kind of Thanksgiving from employer to employee. Here continuous service includes all approved leaves, weekly offs, legal strike etc. It means that if...

"The wage used as a basis for calculating the end of service gratuity shall not include payments made to the worker in reimbursements, housing, transport and travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social services, and any other bonuses or allowances." a - If he or she is dismissed from service for any of the reasons set forth in Article 120 or if he or she quitsemployment in view of avoiding the dismissal in accordance with the article. (This article deals with dismissal during or at end of probation, or due to charges of material loss, failure to perform basic duties even after a warning, interrogation, crime etc.)