What is gratuity

Gratuity is the amount paid by an employer to the employee for the services rendered by him/her during the period of employment. Gratuity can only be given when the employee completes a minimum of five years of service with an organization. However, these five years must be continuous and there should be no gap in the services of the employee with that company. Generally, employers pay gratuity at the time of retirement, but can also be paid during the period of employment. Gratuity is calculated based on the last drawn salary and years of service. The Gratuity Act came into force in the year 1972. Who is eligible for Gratuity? An employee is eligible for gratuity only if he/she is eligible for superannuation and must have completed five years of continuous employment. Gratuity can also be paid by the employer in case of the death of an employee or if the employee becomes disabled due to an accident or any other worst-case scenario. How is Gratuity calculated? Gratuity calculation depends on two major factors that are last drawn salary and number of years provided by an employee as service. As per the Payment of Gratuity Act 1972, Gratuity should not exceed an amount of 20 Lakhs and the act has categorized non-government employees into two categories; • Employees covered under the act Gratuity calculation formula: 15 * last drawn salary * tenure of working / 26 • Employees not covered under the act Gratuity calculation formula: 15* last drawn salary * tenure of working / 30

Gratuity Money, also known as a tip, given to one who provides services and added to the cost of the service provided, generally as a reward for the service provided and as a supplement to the service provider's income. Legend suggests that the term "tip" originated from an innkeeper's sign, "To Insure Promptness." Traditionally, patrons gave gratuity to those providing services in order to ensure faster service. Gratuity has always been defined by local custom and etiquette, never by law. Individuals who work for gratuity include those who provide a wide variety of services, including, for example, waiters and waitresses, bartenders, hotel employees, and cab drivers. Gratuity is customarily designed to ensure that patrons receive the best service possible. The custom allows service providers to be rewarded for providing good service and lets patrons penalize those who provide poor service. The amount of gratuity depends upon the type of service, though tips are usually determined by the total cost of service provided. Proper etiquette suggests that patrons should tip between ten to twenty percent of the total bill. Without gratuity, service providers may have no incentive to provide a higher level of service than necessary. The system of tipping has been the subject of extensive commentary and debate. For example, eleanor roosevelt suggested to those Americans traveling in foreign lands, "a fair tip, or one a little on the generous side, will leave a pleasant feeling and ...

How much to tip on a cruise is a question that trips up many first-timers. That’s because some cruise lines tack daily service fees onto passenger bills — yet many travelers still hand out additional cash gratuities, either as a matter of course or for exemplary service. The extra cost of the automatic gratuity charges can be a shock to first-time cruisers. At some lines, these charges run as high as $25 per day. And, unlike the typical per person. At many big lines, such as For more cruise guides, news and tips, sign up for TPG’s Still, not all lines have service fees that high. Some don’t charge a service fee at all. In many cases, the service charges are adjustable. Tipping on a cruise does not have to be complicated, but you need to understand the big picture to budget for your vacation appropriately. Read on to learn all about cruise ship tipping culture and how much you’ll need to tip on your next cruise, based on which cruise line you’re sailing. Tipping on a cruise ship: The big picture Most of the biggest cruise lines automatically add some type of service or gratuity fee onto passenger bills. Lines with such charges include both of the two giants of the cruise business, Royal Caribbean and That said, the total number of lines with a service fee has been shrinking over the years. Many smaller and higher-end cruise operators are folding tips and gratuities into their base fares. Lines that now cover gratuities in their fares include I would like to subscribe to The...

There is no set percentage stipulated by law for the amount of gratuity an employee is supposed to receive- an employer can use a formula-based approach or even pay higher than that. Gratuity payable depends on two factors: last drawn salary and number of years of service. To calculate how much gratuity is payable, the Payment of a) Employees covered under the Act b) Employees not covered under the Act An employee will be covered under the Act if the organisation employs at least 10 persons on a single day in the preceding 12 months. Once an organisation comes under the purview of the Gratuity Act, it will always remain covered even if the total number of employees falls below 10. a) For employees covered under the Act There is a formula using which the amount of gratuity payable is calculated. The formula is based on 15 days of last drawn salary for each completed year of service or part of thereof in excess of six months. The formula is as follows: (15 X last drawn salary X tenure of working) divided by 26 Here, last drawn salary means basic salary, dearness allowance and commission received on sales. Suppose A's last drawn basic pay is Rs 60,000 per month and he has worked with XYZ Ltd for 20 years and 7 months. In this case, using the formula above, gratuity will be calculated as: (15 X 60,000 X 21)/26 = Rs. 7.26 lakh In the above case, we have taken 21 years as tenure of service because A has worked for more than 6 months in year. Had he worked for 20 years and 5 mont...

As of September 7 th, 2022, the automatic service gratuity of $16.00 USD per person, per day for guests in non-suites staterooms, or $18.50 USD per person, per day for guests in Suites, will be applied to each guest’s SeaPass account on a daily basis. The gratuity applies to individual guests of all ages and stateroom categories. As a way to reward our crew members for their outstanding service, gratuities are shared among dining, bar & culinary services staff, stateroom attendants and other hotel services teams who work behind the scenes to enhance the cruise experience. In the unlikely event that a guest onboard being charged the daily automatic gratuity does not receive satisfactory service, the guest may request to modify the daily amount at their discretion by visiting Guest Services onboard and will be able to do so until the morning of their departure. Guests who have pre-paid their gratuity will not see a daily charge during their cruise. The automatic daily gratuity is based on customary industry standards. Applying this charge automatically helps streamline the recognition process for the crew members that work to enhance your cruise. We hope you find the gratuity to be an accurate reflection of your satisfaction and thank you for your generous recognition of our staff. A 18% gratuity is automatically added to all beverages, mini bar items, and spa & salon purchases. Guests can pre-pay gratuities by calling 866-562-7625 before the sailing*. Guests booked through ...

Gratuity is a lump sum amount paid by the employer to the employee as a token of appreciation for the services they have provided towards the company. It is important to know what are the eligibility and the amount of gratuity that an employee will receive. What is Gratuity in Salary? Gratuity is the monetary amount which is payable to the employee of an organisation under the Payment of Gratuity Act 1972. This is mainly paid to the employee as a token of appreciation for his/her services towards the company. Gratuity payment is one of the several components that make up the gross salary of the employee. However, an employee is Read also : Check Your Personal Loan Eligibility In Less Than A Minute Calculate Now How Does Gratuity Work? The employer may either pay their employees the gratuity amount from their own account or opt for a general gratuity insurance plan with a service provider. The company then pays annual contributions to the service provider, and in return, the insurance company can pay the gratuity amount to the employee, by following the policy rules and regulations. The gratuity amount is totally paid by the employer without any contributions from the employee. What are the Eligibility Criteria to Receive Gratuity? Here is the list to check if an employee is eligible to receive the gratuity amount from the employer or not: • They should be eligible for superannuation • They resign after working for five years with a single employer • They retire from work •...

How much to tip on a cruise is a question that trips up many first-timers. That’s because some cruise lines tack daily service fees onto passenger bills — yet many travelers still hand out additional cash gratuities, either as a matter of course or for exemplary service. The extra cost of the automatic gratuity charges can be a shock to first-time cruisers. At some lines, these charges run as high as $25 per day. And, unlike the typical per person. At many big lines, such as For more cruise guides, news and tips, sign up for TPG’s Still, not all lines have service fees that high. Some don’t charge a service fee at all. In many cases, the service charges are adjustable. Tipping on a cruise does not have to be complicated, but you need to understand the big picture to budget for your vacation appropriately. Read on to learn all about cruise ship tipping culture and how much you’ll need to tip on your next cruise, based on which cruise line you’re sailing. Tipping on a cruise ship: The big picture Most of the biggest cruise lines automatically add some type of service or gratuity fee onto passenger bills. Lines with such charges include both of the two giants of the cruise business, Royal Caribbean and That said, the total number of lines with a service fee has been shrinking over the years. Many smaller and higher-end cruise operators are folding tips and gratuities into their base fares. Lines that now cover gratuities in their fares include I would like to subscribe to The...

Gratuity is the amount paid by an employer to the employee for the services rendered by him/her during the period of employment. Gratuity can only be given when the employee completes a minimum of five years of service with an organization. However, these five years must be continuous and there should be no gap in the services of the employee with that company. Generally, employers pay gratuity at the time of retirement, but can also be paid during the period of employment. Gratuity is calculated based on the last drawn salary and years of service. The Gratuity Act came into force in the year 1972. Who is eligible for Gratuity? An employee is eligible for gratuity only if he/she is eligible for superannuation and must have completed five years of continuous employment. Gratuity can also be paid by the employer in case of the death of an employee or if the employee becomes disabled due to an accident or any other worst-case scenario. How is Gratuity calculated? Gratuity calculation depends on two major factors that are last drawn salary and number of years provided by an employee as service. As per the Payment of Gratuity Act 1972, Gratuity should not exceed an amount of 20 Lakhs and the act has categorized non-government employees into two categories; • Employees covered under the act Gratuity calculation formula: 15 * last drawn salary * tenure of working / 26 • Employees not covered under the act Gratuity calculation formula: 15* last drawn salary * tenure of working / 30

As of September 7 th, 2022, the automatic service gratuity of $16.00 USD per person, per day for guests in non-suites staterooms, or $18.50 USD per person, per day for guests in Suites, will be applied to each guest’s SeaPass account on a daily basis. The gratuity applies to individual guests of all ages and stateroom categories. As a way to reward our crew members for their outstanding service, gratuities are shared among dining, bar & culinary services staff, stateroom attendants and other hotel services teams who work behind the scenes to enhance the cruise experience. In the unlikely event that a guest onboard being charged the daily automatic gratuity does not receive satisfactory service, the guest may request to modify the daily amount at their discretion by visiting Guest Services onboard and will be able to do so until the morning of their departure. Guests who have pre-paid their gratuity will not see a daily charge during their cruise. The automatic daily gratuity is based on customary industry standards. Applying this charge automatically helps streamline the recognition process for the crew members that work to enhance your cruise. We hope you find the gratuity to be an accurate reflection of your satisfaction and thank you for your generous recognition of our staff. A 18% gratuity is automatically added to all beverages, mini bar items, and spa & salon purchases. Guests can pre-pay gratuities by calling 866-562-7625 before the sailing*. Guests booked through ...

There is no set percentage stipulated by law for the amount of gratuity an employee is supposed to receive- an employer can use a formula-based approach or even pay higher than that. Gratuity payable depends on two factors: last drawn salary and number of years of service. To calculate how much gratuity is payable, the Payment of a) Employees covered under the Act b) Employees not covered under the Act An employee will be covered under the Act if the organisation employs at least 10 persons on a single day in the preceding 12 months. Once an organisation comes under the purview of the Gratuity Act, it will always remain covered even if the total number of employees falls below 10. a) For employees covered under the Act There is a formula using which the amount of gratuity payable is calculated. The formula is based on 15 days of last drawn salary for each completed year of service or part of thereof in excess of six months. The formula is as follows: (15 X last drawn salary X tenure of working) divided by 26 Here, last drawn salary means basic salary, dearness allowance and commission received on sales. Suppose A's last drawn basic pay is Rs 60,000 per month and he has worked with XYZ Ltd for 20 years and 7 months. In this case, using the formula above, gratuity will be calculated as: (15 X 60,000 X 21)/26 = Rs. 7.26 lakh In the above case, we have taken 21 years as tenure of service because A has worked for more than 6 months in year. Had he worked for 20 years and 5 mont...