Salaried employees in India can avail of gratuity benefits as per the Payment of Gratuity Rules, 1972, after completing a minimum of 4 years and 240 days of continuous service. The gratuity amount is calculated based on the final drawn salary of the employee. There are specific formulas to determine the gratuity amount depending on whether the organization is covered under the Act. It is essential for employees to understand their rights and entitlements regarding gratuity to ensure they receive this statutory benefit upon meeting the eligibility criteria. To qualify for gratuity, employees must have worked for the same employer for the specified duration without any breaks in service. Employers are obligated to pay gratuity to their employees, and it is crucial for both parties to be aware of the rules and regulations governing gratuity in India. By familiarizing themselves with the provisions of the Payment of Gratuity Act, employees can ensure they receive their rightful dues at the time of retirement, resignation, or any other eligible event. Understanding the intricacies of gratuity calculation can help both employees and employers fulfill their obligations and rights in compliance with the law.
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