Everyone knows that gratuity is paid after working continuously for 5 years with a company or employer, but there are some cases in which this time limit is not applicable. The Gratuity Act says that if an employee dies or becomes completely disabled, then he should be paid gratuity even without working for 5 years.
new Delhi. Government and private sector employees are given the benefit of gratuity after working continuously for 5 years with the same employer or company. When the employee leaves the job or retires after working for a fixed period, he is paid a fixed amount as gratuity. But, do you know that in some cases the rule of working for 5 years does not apply and gratuity is paid even before that.
According to the Gratuity Act 1972, if an employee dies due to accident or becomes disabled, then the rule of working for 5 years does not apply to him. The full amount of gratuity is paid to such employees or their nominees. If an employee has not made anyone his nominee for gratuity, then this money will be given to his successor. Not only this, if the successor of that employee is a minor, then the Controlling Authority will invest the amount of gratuity in a bank or financial institution and when the successor becomes an adult, the money will be paid to him.
Even if the employee becomes disabled in an accident, he can claim gratuity without completing the period of 5 years. Here disabled means that the employee is unable to return to work again or due to some illness he is not in a position to return to work.
What is the rule of paymentÂ
The Gratuity Act says that if an employee becomes completely disabled or something untoward happens to him, then no term of employment is applicable to him. However, the amount received by that employee or his family as gratuity will depend on the duration of his job. However, it will remain a maximum of Rs 20 lakh only.
What is the calculation of gratuity in such cases?
If the employee becomes completely disabled or dies within a year of his job, then twice the amount of basic salary is given as gratuity. If you have served for more than one year but less than 5 years, then 6 times of the basic money will be given as gratuity. If he has served more than 5 years but has spent less than 11 years, then he will be paid 12 times the amount of basic salary.
If the employee has spent more than 11 years but less than 20 years in the job, then he or his family will be given 20 times the basic salary as gratuity. At the same time, those working for 20 years or more are given 33 times their basic salary.
