Applies to:

•  Every Factory, Plantation etc.

•  Shops & Establishments if employed 10 or more employees on any day.

Eligibility:

•  On termination of employment after five years of continuous service due to retirement/resignation/retrenchment

•  No five year condition in case of death, disablement due to accident or disease.

•  Quantum: Fifteen days salary / wages (last drawn) for every year of service or part thereof in excess of six months.

•  Maximum gratuity: Rs. 20,00,000/-
(w.e.f. 29-03-2018)

Calculation:

Last month salary (Basic+DA) divided by 26 * 15 * Number of completed Year of service.

Due date: Not later than 30th day from the date of exit from employment.

Other obligations:

To display notice of Authorised Persons.

To display abstract of the Act & Rules

Compulsory Insurance for employer’s liability for payment of gratuity, by the LIC or by any other prescribed insurer – w.e.f.19-9-2013.