Gratuity Act 1972 – Gratuity Act India – Payment:
Gratuity Act 1972 Also called gratuity act India, payment of gratuity act and gratuity act amendment. Gratuity Act 1972 offers a part of the salary of the employee (in gratitude to all the services) by the employer. In simple words, we can say that Gratuity is an additional salary which every employee receives at the time of his/her retirement or while resigning from the job.
It is a verbal act of offering the part of the salary to the employee by the employer in return for the services which he/she has done for the company. It was not offered to all the employees, not given to those who are eligible for the same. If an employee is eligible for Gratuity, then it is added to his/her final salary.
Gratuity Act 1972 – Gratuity Act India:
One has to be eligible for getting Gratuity or applying for it.The eligibility criterion is as follows:
- If the person works at a shop or a company which comes under Gratuity Act 1972.
- One must have to be a regular employee of a company for at least five continuous years. 240 days minimum in a year of regular service is must be eligible for Gratuity.
If the employee fulfills the eligibility criteria, then he/she can get or apply for Gratuity under Gratuity Act.
Payment of Gratuity Act:
Ways to get Gratuity:
- The employer gives the Gratuity directly to the employee along with the final salary.
- The employee has to apply for Gratuity with a written application within 30 days of retirement or resignation.
If the employee is aware of their retirement date, then he/she can apply for Gratuity in advance itself. One more point to keep in mind is that Gratuity is taxable which means that the employee has to pay tax on the same.
Gratuity Act 1972 Also called gratuity act India, payment of gratuity act and gratuity act amendment.