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      Amendments In Payment Of Gratuity Act: Proposed

      Sunday, February 26th, 2017 Amritesh 24 responses

      Gratuity Payment Act is expected to be amended soon. In the recently concluded tripartite meeting it has been decided that the Tax Free Gratuity limit to be enhanced to Rs 20 lakhs from Rs 10 lakhs to bring it at par with the Government employees who enjoy similar benefits as per the recommendations of the 7th Pay Commission. Official Notification on the same is expected soon. The recommendation to increase the Tax Free Gratuity to Rs 20 lakhs has been agreed upon by the Labour Ministry and the Central Unions. The move will benefit Individuals employed in the private sectors. Along with it, host of other reforms were also suggested to the Ministry of Labour by the Central Unions which…

      Benefits Calculation Under Gratuity Act

      Sunday, December 7th, 2014 Amritesh one response

      In my earlier post I have discussed about the Gratuity Act,1972 and the salient features of the act. Here I would discuss the calculation of Gratuity and Tax Liability of same.Follow the Link to Read Salient Features about the Gratuity Act,1972.Gratuity Act,1972: For Employees'HOW DOES IT WORK?Every employer has to obtain insurance for his liability to pay gratuity from a Life Insurer. But if an employer has already established an approved Gratuity Fund [as per Section 2(5) of the Income Tax Act] or who having an approved gratuity fund with atleast 500 employees, may claim exemption from mandatory insurance.Every Employer should get his Establishment registered with the Controlling Authority.CALCULATION OF GRATUITY Gratuity Payable: 15 days’ wages * No of Completed Years…

      Gratuity Act, 1972

      Friday, December 5th, 2014 Amritesh no responses

      Gratuity is part of the salary that you receive in gratitude for the service offered by him/her to the employer. Gratuity like other Statutory Benefits like Provident Fund and Pension Fund is received by the employee at the end of the tenure. However in your Appointment Letter, Annual Increment letter you will find CTC includes the Gratuity as well. In fact in normal calculation comes out be 4.83% of your salary.Now let’s have an in depth look into the Act and benefits for the employees’.ApplicabilityThe Act is applicable to:-Every factory, mine, shop, plantation, oilfield and any establishment governed by Shops and Establishment Act of the State.Any establishment wherein 10 or more persons are employed, or were employed on any day…