Benefits Calculation Under Gratuity Act

Saturday, December 16th, 2017 Amritesh 5 responses

Gratuity is provided to Employees in recognition of their service rendered to the Organization. The minimum tenure of service to be eligible for Gratuity is 5 years (4 years and 240 days). Benefits Calculation Under Gratuity Act is simple and easy to understand. 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 on the same. Refer to the link shared below. Gratuity Act 1972 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)…

Payment of Gratuity Act

Friday, December 15th, 2017 Amritesh one response

Gratuity is a benefit extended to the Employees in gratitude of the service rendered to the Organization/Employer. Gratuity like other Statutory Benefits like Provident Fund and Pension Fund is received by the employee at the end of their employment tenure. Gratuity Act was introduced in 1972 as Payment of Gratuity Act, 1972. However in the Appointment Letter, Annual Increment letter you will find CTC includes the Gratuity as well. In fact, while arriving at Cost to Company (CTC) for an employee, the gratuity is calculated as 4.83% of the Salary. Thus it is a component of Individual’s Compensation package (Salary). Calculation of Gratuity Benefits Now let’s understand the Gratuity Act and benefits for the employees’. Applicability The Act is applicable…

Employees’ Provident Fund (EPF) Online Grievance Management System: EPFiGMS

Friday, November 17th, 2017 Amritesh 62 responses

Subscribers to Employees’ Provident Fund (EPF) have the option to lodge complaint pertaining to their PF account through the Online Grievance Management portal for prompt action. Subscriber may easily register their complain online and monitor the status on the portal. The process to register the grievance is very simple and easy. However, for registration of any grievance, Subscriber is required to provide their respective valid Unique Account Number (UAN). The portal provides direct platform to the Subscribers to raise their concern in front of competent authority and get their concerns resolved. Employees Provident Fund internet Grievance Management System (EPFiGMS) is the online portal for the Subscribers to register their grievances. It is a common platform for all, Employees, Employer and…

Employees’ Pension Scheme (EPS): Should You Opt for Deferred Withdrawal?

Wednesday, August 30th, 2017 Amritesh 6 responses

Recently, Government made amendments to the Employees Pension Scheme (EPS) norms allowing Subscribers to defer withdrawal of pension (After 58 years) for minimum of 1 year and maximum of 2 years along with additional interest of up to 8.16% on actual pension. The amendments offer two options to the Subscriber with regard to deferred withdrawal of pension fund. First, the Subscriber may continue to contribute to the Pension Fund for the extended period and the same will be considered while calculating Pensionable Salary and Pensionable Service. Second, the Subscriber decides to defer the withdrawal for 2 years but opts not to contribute during the deferment period. Employees' Pension Scheme (Series-1) Benefits Under Employees' Pension Scheme (Series 2) Calculation Of Pension…

Employees’ Pension Scheme (EPS): Increase Your Pension with Deferred Withdrawal

Monday, August 28th, 2017 Amritesh 4 responses

Government recently made few amendments to the Employees’ Pension Scheme (EPS). These amendments are aimed at reducing the deficit in Pension Fund and provide Subscribers with an option to receive higher pension. The new changes allow Subscribers to defer withdrawal of pension for 1 year or 2 years after reaching the age of 58 but not beyond 60 years. Member will enjoy an additional increase of 4% in case of deferral for 1 year and 8.16% in case of deferral for 2 years. Members will also have the option to contribute to the Pension Fund till the age of 60 which would be included while calculating pensionable service and contribution period. Members who do not wish to contribute during the…

Benefits Under Employees’ Pension Scheme (Series 2)

Friday, August 25th, 2017 Amritesh no responses

Employees Pension Scheme (EPS) is extended to the Subscribers of Employees’ Provident Fund (EPF). The Scheme aims to provide regular income to the respective Individuals post retirement to meet his/her basic necessities. The Applicability, Coverage and other provisions of the Act have been discussed in my previous post. You may read my Introductory Post on Employees’ Pension Scheme (EPS) in the link given below: Employees’ Pension Scheme (Series-1): EPS Guidelines Employees' Pension Scheme (Series-3): Calculation of Pension Employees’ Pension Scheme (EPS): Increase Your Pension with Deferred Withdrawal Benefits Under Employees’ Pension Scheme (EPS) is discussed below. Monthly Member’s Pension: Any member shall be entitled to pension:- On Superannuation if he/she has rendered eligible service for 10 years or more and…

Employees’ Pension Scheme (Series-1): EPS Guidelines

Thursday, August 24th, 2017 Amritesh 4 responses

Employees Pension Scheme (EPS) was initiated for the welfare of the Employees post Retirement and provides them with Social Security. In 1971 Central Government launched the Employees’ Family Pension Scheme for providing Family Pension and Life Assurance Benefit to the employees’ which was later merged with the Employees’ Pension Scheme,1995 and Employees’ Deposit Linked Insurance Scheme,1976 for providing benefits to the employees. From 1st September, 2014 few amendments have been made to Employees’ Pension Scheme and we will look at those in this post along with some of the important aspects of the scheme. Few changes made recently to Employees Pension Scheme have also been incorporated. Benefits Under Employees' Pension Scheme (Series-2) Employees' Pension Scheme (Series-3): Calculation of Pension Employees’…

Employees’ State Insurance Act (ESI)

Wednesday, July 12th, 2017 Amritesh one response

Employees’ State Insurance (ESI) Act was introduced with the objective of providing the workers, employees with proper medical care and benefits. The Act has been amended from time to time to extend benefits to more and more employees/workers so as to provide them with a medical cover. ESI was enacted as a part of Social Security and Welfare measure which would provide protection to the working population especially the lower income group in the society. In this post I would cover the Salient Provisions of the Scheme. The Benefits under the Scheme will be covered in another article. More on the ESI Act and EPF. Links provided below:- Salient Features And Benefits Under Employees State Insurance Act (ESI) Employees' Provident…

Online Withdrawal of Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS)

Monday, June 5th, 2017 Amritesh 3 responses

Employees’ Provident Fund (EPF) and Employees Pension Fund (EPS) withdrawal is a real pain for most of the subscribers. But now online fund withdrawal is possible. Online withdrawal of EPF and EPS Fund helps Individual to settle claims without having to wait for the respective Employer to initiate the process. The online settlement of claim is made possible through EPF unified portal which was recently launched by EPFO. Even Claim Transfer while switching jobs is also possible through the Subscriber portal. This has made online withdrawal of EPF and EPS Fund easy and simple. *The facility for online withdrawal has been launched and it is completely functional. The EPFO has also shortened the timeline for settlement of claims from 20 days to…

Employees Provident Fund (EPF) Online Claim Transfer

Friday, May 26th, 2017 Amritesh 10 responses

Employees Provident Fund (EPF) has made it possible for the Subscribers to transfer claim online through their previous or present employer. Subscribers switching jobs may now submit the transfer claim online, the same will be processed within few days. The option to apply for transfer of claim is available on the EPFO portal. In order to apply for  transfer claim online, Subscribers need to activate their UAN. Following which the application for the Transfer Claim may be made. Applying for Transfer of Claims Online Log onto EPFO portal and Click on the Link for Online Claim Transfer Portal. (www.epfindia.gov.in) Check Eligibility for Online Transfer of Claim through the option made available to the Subscribers- This can be done by providing…
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