Gratuity Under Award | Gratuity under Act |
Gratuity is paid after completion of 10 years of continuous service or at the time of: - The death of the employee,
- Employee becoming physically or mentally incapable of further service,
- Termination of Service
- Retirement on superannuation and
- On voluntary retirement or resignation after 10 years of continuous service
| - Retirement on superannuation
- Resignation after 5 years of service
- Death and
- Disablement
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- One month pay for each completed years of service upto 15 years
- For service exceeding 15 years upto 30 years-NIL
- For Service exceeding 30 years- ½ month pay for each completed year of service
- Pay = Basic Pay + Special Pay + Officiating Pay + PQP+ increment component of FPP.
- Based on last salary drawn
- Fraction of year in excess of 6 and more, amount is to be paid on pro-rata basis in case of officers and
- counted as full year in case of Award Staff
| - 15 days wages * Number of years of Service i.e. 15/26 * Pay* No of years of service.
- Pay = Basic Pay + DA + Special pay + PQP +Officiating Pay + increment component of FPP
- One day Wage = Monthly wage divided by 26
- Based on Last drawn Salary
- Fraction of year in excess of 6 month will be taken as full year
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No Limit | Max. Rs.20,00,000
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Tax Exemption | Exemption up to Rs.20,00,000 | Exemption up to Rs.20,00,000
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Gratuity in the Bank is paid to employees and officers both under the Gratuity Act, 1972 (Max. Rs. 20 lakhs) and under the provisions of Bipartite Settlement for Award Staff and as per Officer Service Regulation (OSR) for officers whichever is higher.
Reference: OSR, Gratuity Act 1972, Bank Circulars etc
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