About The Act
Objectives
The Payment of Gratuity Act provides for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.
The Act enforces the payment of gratuity, a reward for long service, as a statutory retiral benefit.
Applicability
The Payment of Gratuity Act extends to the whole of India and is applicable to all factories, mines, oilfields, plantations, ports, railway companies and any establishments where 10 or more persons were employed on any day of the preceding 12 months and every Shop and Establishment of that State, in which 10 or more persons are employed, or were employed on any day in the preceding 12 months.
Every employee irrespective of his wages is entitled to receive gratuity if he has rendered continuous service of 5 years or more than 5 years.
The Act is not applicable to apprentices and persons holding a post under the Central or State government who are governed by any other rule providing for payment of gratuity.
The last drawn salary including Basic and Dearness allowance(DA). The maximum gratuity payable is Rs 20,00,000.
Related Sections of the Act
Section 1 : Short, title, extent, application and commencement
Section 1 : Short, title, extent, application and commencement
Section 14 : Act to override other enactments, etc
Section 14 : Act to override other enactments, etc
Important Definitions
2A – Appropriate Government
2A – Appropriate Government
2E – Employee
2E – Employee
2F – Employer
2F – Employer
2G – Factory
2G – Factory
2I – Major portr
2I – Major portr
2J – Mine
2J – Mine
2L – Oilfield
2L – Oilfield
2M – Plantationr
2M – Plantationr
2N – Port
2N – Port
2P – Railway company
2P – Railway company
2S – Wages
2S – Wages
Related Notifications
S.O. 837(E) – Dates on which act comes into force in different establishments
(12-Oct-1995)
S.O. 837(E) – Dates on which act comes into force in different establishments
(12-Oct-1995)
S.O. 837(E) – Dates on which act comes into force in different establishments
(12-Oct-1995)
S.O. 837(E) – Dates on which act comes into force in different establishments
(12-Oct-1995)
F.No S-42013/1/95-SS – Application of Act to Educational Establishments
(03-Apr-1997)
F.No S-42013/1/95-SS – Application of Act to Educational Establishments
(03-Apr-1997)
F.No S-42013/1/95-SS – Application of Act to Educational Establishments
(03-Apr-1997)
F.No S-42013/1/95-SS – Application of Act to Educational Establishments
(03-Apr-1997)
S.O. 2218 – Application of Act to Trusts or Societies
(31-Dec-1972)
S.O. 2218 – Application of Act to Trusts or Societies
(31-Dec-1972)
S.O. 2218 – Application of Act to Trusts or Societies
(31-Dec-1972)
S.O. 2218 – Application of Act to Trusts or Societies
(31-Dec-1972)