Payment of Gratuity Under Gratuity Act, 1972 and
Bipartite Settlement / OSR In Banks after 10BPS
You can Calculate here Gratuity payable under Gratuity Act, 1972 & BPS / OSR
Gratuity in the Banks is payable to employees and officers both under the Gratuity Act, 1972 as well as under the provisions of our Bipartite Settlement for employees and as per OSR for officers whichever is higher.
(other than in SBI where Gratuity is paid only under the Act with a ceiling of Rs. 10 lacs)
Eligibility :
On retirement on superannuation | |
On resignation after 10 years' service | |
On termination of service | |
On becoming incapacitated | |
On the death of an employee | |
On retirement on superannuation | |
On resignation after 5 years' service | |
On disablement | |
On death of an employee |
One month Pay for each completed year of service (Max. 15 months) plus half month Pay for each year beyond 30 years' service (No maximum) Pay means - Average of Basic pay, Spl. Pay*, Spl. Allowance*, Offg. Pay*, PQP, increment component of FPP payable during the twelve months next preceding death,disability,retirement,resignation or termination as the case may be. * (only that portion ranks for superannuation benefits in case of workmen employees) Explanation
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15 Days wage x No. of years of service ( Max. Rs. 10 lacs) Wage means last drawn Basic pay, Spl. Pay*, Spl. Allowance*, Offg. Pay*, PQP, DA, Increment portion of FPP. 1 day = monthly wage/26 days * (only that portion ranks for superannuation benefits in case of workmen employees) |
The higher of the two in (a) i.e. Gratuity as per Act or (b) i.e. Gratuity as per OSR / BPS will be paid.
Gratuity Paid upto Rs. 10.00 lakhs is exempt from income tax under sec 10(10).
PAYMENT OF GRATUITY FROM 1.11.2012
- In terms of Section 4 (5) of the Payment of Gratuity Act, 1972, Gratuity under Gratuity Act or BPS provisions /OSR whichever is higher is payable.
- Hence for every retiring employee, Gratuity has to be re-calculated both under the Act and under BPS and higher of the two will be paid.
- For those employees who have retired from November, 2012, Gratuity will be re-calculated both under the Act and as per BPS / OSR and arrears/difference if any will be paid to them.
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