Where is gratuity applicable?

Payment of Gratuity Act 1972 covers all the norms related to Gratuity. Gratuity Act is applicable to employees engaged in mines, factories, oilfields, ports, plantations, shops, railway companies or other establishments and for matters connected therewith or incidental thereto.

Who is eligible for Payment of gratuity?

Under the Payment of Gratuity Act, 1972, an employee who has worked in a company for over five years is eligible for gratuity by his/her employer.

Is gratuity applicable for private company?

Gratuity Meaning in Salary It is mandatory for any employer in the private sector or public sector who has 10 or more employees to pay gratuity to all employees. It is a monetary reward for being in service with the company. It acts as a retirement benefit & becomes part of post-retirement plan.

Who is an employee under Payment of Gratuity Act?

(e) “employee” means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are …

What is the payment of Gratuity Act 1972?

The Payment of Gratuity Act 1972:- Gratuity is a voluntary Payment made by the employer to the employee in recognition of continuous, meritorious services and sincere efforts by the employee towards the organization.It is governed under the Payment of Gratuity Act 1972.It is an Act to provide for a scheme for the payment…

When does an employee become eligible for gratuity?

Therefore every employee will become eligible for gratuity irrespective of his wage level. Time when Gratuity becomes payable: – As per section 4 (1) of payment of gratuity Act 1972, gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service of five years or more.

When does a gratuity become payable in India?

Time when Gratuity becomes payable: – As per section 4 (1) of payment of gratuity Act 1972, gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service of five years or more.

Is the payment of Gratuity Act applicable to all shops?

It is also applicable to every shop or establishment in which ten or more employees are/ were employed on any day during the preceding 12 months. The Act continues to be applicable to any establishment or institution even if the number falls below 10 subsequent to its coverage.