Generally the employer pays gratuity to the employee during retirement. However, grants are also given after five years of service subject to certain conditions. It is paid even five years before the employee's death or handicap. There is no specific set of criteria for graduation, but it is determined by the employer's policy.
This is the Payment of Gratuity Act 1972. If the company has provided employment to at least 10 people in 12 months, it will come under this law.
Calculation of Graduation
Employees under the Graduate Act
Here the commission paid on the previous salary, basic salary, dearness allowance and sales. For example, the previous salary is Rs. 60 thousand and he has worked for 20 years and seven months in the company. So, it will be a graduate,
(16 * 60,000 * 21) / 26 = 7.26 lakh rupees
It has been 21 years since it worked 20 years and seven months. If 20 days of employment was 20 years, then it would be considered 20 years.
2) Employees not covered under law
If a company not in the Graduate Act wishes to give Graduate benefits to its employees, then the amount of graduates for such employees will be decided as follows.
1. Rs. 10 million or more
2. The limit of real graduates
3. Average salary of 15 days per year from the total employment year
The average salary for graduation will be in the average of 10 months salary before the final month's salary.
For example (15 * 60,000 * 20) / 30 = Rs. 6 million
If the employee dies, the amount of graduation will depend on the total time of the job. Under these circumstances, a maximum of Rs. May be up to 20 lakh. Earlier this limit was Rs. One million and it has been doubled.
If you have less than one year of work, you will be given two times the basic salary. If there is less than one year or more but less than five years of employment, six times the basic pay, five years or more but less than 11 years of employment, 12 times of basic salary, 11 years or more but less than 20 years of employment, the original salary If you have 20 jobs and 20 years of age or more, you will be paid half-a-gram gratuity for every six months, subject to a maximum of 33 pay wages.
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This is the Payment of Gratuity Act 1972. If the company has provided employment to at least 10 people in 12 months, it will come under this law.
Calculation of Graduation
Employees under the Graduate Act
Here the commission paid on the previous salary, basic salary, dearness allowance and sales. For example, the previous salary is Rs. 60 thousand and he has worked for 20 years and seven months in the company. So, it will be a graduate,
(16 * 60,000 * 21) / 26 = 7.26 lakh rupees
It has been 21 years since it worked 20 years and seven months. If 20 days of employment was 20 years, then it would be considered 20 years.
2) Employees not covered under law
If a company not in the Graduate Act wishes to give Graduate benefits to its employees, then the amount of graduates for such employees will be decided as follows.
1. Rs. 10 million or more
2. The limit of real graduates
3. Average salary of 15 days per year from the total employment year
The average salary for graduation will be in the average of 10 months salary before the final month's salary.
For example (15 * 60,000 * 20) / 30 = Rs. 6 million
If the employee dies, the amount of graduation will depend on the total time of the job. Under these circumstances, a maximum of Rs. May be up to 20 lakh. Earlier this limit was Rs. One million and it has been doubled.
If you have less than one year of work, you will be given two times the basic salary. If there is less than one year or more but less than five years of employment, six times the basic pay, five years or more but less than 11 years of employment, 12 times of basic salary, 11 years or more but less than 20 years of employment, the original salary If you have 20 jobs and 20 years of age or more, you will be paid half-a-gram gratuity for every six months, subject to a maximum of 33 pay wages.
Read the original source
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