Payment of Gratuity Act 1972 l New Gratuity Eligibility Rule 2021 l Gratuity Calculation l Hindi
Contents of this Video :
0:00 – Intro
0:41 – What is Gratuity?
1:12 – Payment of Gratuity Act 1972
2:23 – Rules of Gratuity
2:47 – New Gratuity Eligibility Rule 2021
4:46- How to Calculate Gratuity?
7:50- Tax Rules on Gratuity
Gratuity is a lump sum amount that employers pay their employees as a sign of gratitude for the services provided. The gratuity rules are mandated under the Payment of Gratuity Act, 1972.The act was passed by the Parliament on 21st August 1972 and came into force on 16th September the same year. All central and state government departments, defense, and local governing bodies are covered under this act. Private organisations can come under its purview subject to fulfillment of certain conditions.
1) Gratuity is payable if an organisation employs 10 or more individuals
2)Employees have to complete 5 years of service to be eligible
3)Gratuity can be forfeited for several reasons
4) Employers cannot refuse to pay gratuity even during bankruptcy
5) Gratuity up to the tune of Rs.20 Lakh is exempt from Taxation