References are being made to us regarding Gratuity under the 10th BP Settlement signed recently on 25-5-2015. 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 :
As per Bipartite Settlement
As per Gratuity Act
On retirement on superannuation
On retirement on superannuation
On resignation after 10 years’ service
On resignation after 5 years’ service
On termination of service
On disablement
On becoming incapacitated
On death of an employee
On the death of an employee
Eligible Amount:
As per Bipartite Settlement
As per Gratuity Act
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 Basic pay, Spl. Pay, Offg. Pay, PQP, increment portion of FPP.
15 Days wage x No. of years of service ( Max. Rs. 10 lacs)
Wage means Basic Pay, Spl. Pay, Spl. Allowance, PQP, Offg. Pay, DA, Increment portion of FPP.
1 day = monthly wage/26 days
PAYMENT OF GRATUITY FROM 1.11.2012
1.In terms of Section 4 (5) of the Payment of Gratuity Act, 1972, Gratuity under Gratuity Act or BPS provisions whichever is higher is payable.
2.Hence for every retiring employee, Gratuity has to be calculated both under the Act and under BPS and higher of the two will be paid.
3.For those employees who have retired from November, 2012, Gratuity will be re-calculated both under the Act and as per 10th BPS and arrears/difference if any will be paid to them.
Example:
a)A Special Assistant (Graduate and CAIIB) with 8 Stagnation Increments and retiring in July, 2015 after 40 years’ service
Eligibility as per the Act
Eligibility as per BPS
Paid/
Payable
Under 9th BPS
58,342/ 26 x 15 x 40
= 13,46,353
Max. Rs. 10 lacs
28110 x 20 =
Rs. 5,62,000
10 lacs
Under 10th BPS
62,758 / 26 x 15 x 40
= 14,48,260
Max Rs. 10 lacs
47270 x 20 =
Rs. 9,45,400
10 lacs
b) A Daftary with 8 Stagnation Increments and retiring in July, 2015 after 40 years’ service
Eligibility as per the Act
Eligibility as per the BPS
Payable
Under 9th BPS
30,930/ 26 x 15 x 40
= 713,770
14890 x 20
= 2,97,800
713,770
Under 10th BPS
33,204 /26 x 15 x 40
= 766,250
25000 x 20
= 5,00,000
766,250
Difference of Rs. 52,480 will be paid
c) An Officer retiring in July, 2015 after 40 years’ service
( with Old Basic pay Rs. 25,700 and revised Basic pay Rs. 42,020)
Eligibility as per the Act
Eligibility as per BPS
Paid/Payable
Previous
54,150 / 26 x 15 x 40
= 12,49,615 Max. Rs. 10 lacs
25700 x 20 =
Rs 5,14,000
10 lacs
Revised
56,180 / 26 x 15 x 40
= 12,96,460Max Rs. 10 lacs
42020 x 20 =
Rs 8,40,400
10 lacs
d) An Officer retiring in July, 2015 after 40 years’ service
( with Old Basic pay Rs. 40400 and revised Basic pay Rs. 66070 )
Eligibility as per the Act
Eligibility as per BPS
Paid/Payable
Previous
85,123/ 26 x 15 x 40
= 19,64,377 Max. Rs. 10 lacs
40,400 x 20 =
Rs 8,08,000
10 lacs
Revised
88335 / 26 x 15 x 40
= 20,38,500 Max Rs. 10 lacs
85020 x 20 =
Rs 13,21,400
13,21,400
Difference of Rs. 3,21,400 will be paid
e) An Officer retiring in July, 2015 after 40 years’ service
( with Old Basic pay Rs. 52000 and revised Basic pay Rs. 85000 )
reitired 31.7.2017 .lenth of service 33yrs 4 month 12 days amt payable as per Grauity act 1492715/- ii Amount of grauity payable as per bipertitement/osr 895000/-amtt. grauity exempted from income tax 10,00,000 ( ten lacs )
52950 fpp 1310 da (slab 456 ) 24145.20=78405.0
1492715/ and 895000 . they paid 1000000 /- grauity only
Difference 1492715- 1000000=492715( Rupees 492715 grauity aur milegi ya nhi
Please guide. maximum 1492715 ka rule apply hoga ya nhi
52950 fpp 1310 da (slab 456 ) 24145.20=78405.0
1492715/ and 895000 . they paid 1000000 /- grauity only
Difference 1492715- 1000000=492715( Rupees 492715 grauity aur milegi ya nhi
Please guide. maximum 1492715 ka rule apply hoga ya nhi