The Payment of Gratuity (Central) Rules, 1972
Gratuity is a specified benefit plan offered by the employer to the individual for delivering services consistently for 5 years or more.
It is a monetary incentive generally granted at the time of retirement.
The Payment of Gratuity (Central) Rules, 1972 – Summary
As per the Payment of Gratuity Act of 1972, an employee is entitled to gratuity if he has worked for the same company for at least 5 years. The employee is entitled to the following gratuity:
- Upon his retirement
- Resignation or Superannuation
However, there is an exemption when the need for continued employment with an organization for five years does not apply.
Rules Under The Payment of Gratuity (Central) Rules, 1972
Certain restrictions must be observed while making a payment.
According to the guidelines, once an employee becomes eligible for gratuity, he must apply within 30 days after the day the gratuity becomes due. Furthermore, if the date of retirement is known, the application can be submitted before the 30-day deadline.
Within 15 days of receiving an application, an employer must indicate the amount due and the payment date. The payment must be made within 30 days of the application’s receipt.
Download the Payment of Gratuity (Central) Rules, 1972 PDF following the link given below and collect all the information about the rules.
