The Economic Times: "Arthos helps its customers set realistic retirement goals" --> FREE Limited time offer: HR Zone » Compensation and Benefits » Gratuity related query
Type: HR, Report if not a HR topic
Dear Dharni,
Thanks a lot for the reply..
My concern to raise this query was if a person is covered under EPF it is mandatory that his PF a/c will be ceased at the age of 58yrs., is it so in case of gratuity also???? or it purely depends on mgmt's decision to continue with his gratuity or not???
Hope m clear in asking my query..
Thanks and Regards
Reshma
Dear Anup,
M really thankful to u for the detailed reply... Now my doubts are clear...
Thanks and regards
Reshma
4159 Views
4 Replies
4159 Views 4 Replies+1
Gratuity related query
Type: HR, Report if not a HR topic
Posted 31-12-2009Reply
Dear All,
Would request you to please guide me and let me know if gratuity is applicable for extended service after retirement.
i. e. as per the appointment letter a person will be retired at the age of 58 yrs. but if the mgmt wants to continue his service with the company what should be done with his gratuity.
Will it be ceased at 58 yrs of age or be continued till the extended period.....
Would require our legal experts' opinion, please.
Thanking all in advance.
Regards
Reshma
Hi Reshma,
He will get the gratuity till his service that is upto the age of 58 yrs.but after that if he is continuing with his service with company than in that case it is not compulsory to give gratuity that management will decided on it.
Hope this will help you.
Regards,
Dharni
He will get the gratuity till his service that is upto the age of 58 yrs.but after that if he is continuing with his service with company than in that case it is not compulsory to give gratuity that management will decided on it.
Hope this will help you.
Regards,
Dharni
Hi Reshma,
He will get the gratuity till his service that is upto the age of 58 yrs.b... See Dharni's complete reply
He will get the gratuity till his service that is upto the age of 58 yrs.b... See Dharni's complete reply
Dear Dharni,
Thanks a lot for the reply..
My concern to raise this query was if a person is covered under EPF it is mandatory that his PF a/c will be ceased at the age of 58yrs., is it so in case of gratuity also???? or it purely depends on mgmt's decision to continue with his gratuity or not???
Hope m clear in asking my query..
Thanks and Regards
Reshma
Reshma
Wish you a very Happy New Year!
Legally all the statutory compliances such as EPF, ESIC, Bonus, Gratuity, etc. are to be complied with till the superannuation of an employee.
However, once an employee completes the age of 58 years and reaches the superannuation as is specified in his appointment letter, Law forbids the EPF contribution, ESIC, Bonus viz a viz statutory deductions.
On the other hand, since it is an extended service, management on its own can continue paying the gratuity till the separation of an employee. There is no legislation which says that employee can not be paid the gratuity amount on reaching the age of superannuation.
Since the extension is the discretion of the management; govt. play no interference in respect of the statutory deduction nor it offer any and the company can continue paying 4.81% of the Basic.
Regards
Anup
Wish you a very Happy New Year!
Legally all the statutory compliances such as EPF, ESIC, Bonus, Gratuity, etc. are to be complied with till the superannuation of an employee.
However, once an employee completes the age of 58 years and reaches the superannuation as is specified in his appointment letter, Law forbids the EPF contribution, ESIC, Bonus viz a viz statutory deductions.
On the other hand, since it is an extended service, management on its own can continue paying the gratuity till the separation of an employee. There is no legislation which says that employee can not be paid the gratuity amount on reaching the age of superannuation.
Since the extension is the discretion of the management; govt. play no interference in respect of the statutory deduction nor it offer any and the company can continue paying 4.81% of the Basic.
Regards
Anup
Dear Anup,
M really thankful to u for the detailed reply... Now my doubts are clear...
Thanks and regards
Reshma
+1
Recently in HR Forums
06-04-2023
to the forum topic 
