:: Welcome To Patel Consultancy. ::
  • Call Today (0261) 653 - 1369,     +91 8000011521,     +91 9824111521 patelconsultancy@live.com
  1. Home
  2. The Payment of graturity Act 1972

The Payment Of Gratuity Act, 1972

1.Applicability

Every factory, mine, oilfield, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more persons
Sec. 1


2.Wages for Calculation

@15 days' wages for every completed year as if the month comprises of 26 days at the last drawn wages
Sec. 2(s)


3.Calculation Place-rated employee

@ 15 days' wages for every completed year on an average of 3 months' wages
Sec. 4


4.Calculation Seasonal employee

@ 7 days' wages for every completed year of service
Sec. 4


5.Employee

All employees Irrespective of status or salary
Sec. 2(e)


6.Entitlement

On completion of five years' service except in case of death or disablement
Sec. 2(e)


7.Qualifying period

On rendering of 5 years' service, either termination, resignation or retirement
Sec. 2(e)


8.Display of Notice

On conspicuous place at the main entrance in English language or the language understood by majority of employees of property, etc
Rule 4


9.Nomination

To be obtained by employer after expiry of one year's service, in Form F
Sec. 6, Rule 6


10.Total Celling

Rs. 3,50,000
Sec. 4(3)


11.Mode of Payment

Cash or, if so desired, by Bank Draft or Cheque
Rule 9


12.Recovery of Gratuity

To apply within 30 days in Form I when not paid within 30 days
Sec. 8, Rule 8


13.Forfeiture of Gratuity

On termination of an employee for moral turpitude and riotous or disorderly behaviour
Wholly or partially for wilfully causing loss, destruction of property,etc
Sec. 4(6)


14.Protection of Gratuity

Can not be attached in execution of any decree
Sec. 13


15.Penalties

Imprisonment for 6 months or fine upto Rs.10,000 for avoiding to make payment by making false statement or representation
Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or Rules.
Sec. 9


©2017 Patel Consultancy. All Rights Reserved