To Whom is Gratuity Payable?

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To whom is gratuity payable?

The question now arises as to whom is gratuity payable? Normally it is payable to the employee himself. However, in the case like the death of the employee, then it is payable to his nominee. And in case of no nominee is there, or to his heirs. Also, if any such nominees or heirs are a minor, then the controlling authority deposits the share of such minor.  Otherwise, the same shall be deposited, for the benefit of such minor in such bank or other financial institution. As prescribed by the higher authorities, until such minor attains majority. [W]

The payable amount:

The amount of gratuity is calculated on the basis of services rendered by the employees’. Thus, for every complete service year, or excess of six months part. At fifteen days rate, wages last drawn. Although, the maximum allowance oforthe amount of gratuity under the Act is 10 lacs INR. There is a ceiling on the amount of gratuity between 3.5 lacs INR to 10 lacs INR. Though amendment Act, 2010 i.e. payment of Gratuity enhances it.

Nomination:

All the employees under the Act, are bound to make a nomination. Under the rules’ accordance, for the purpose of payment of gratuity in the event of employees’ death. The rules also provide for changes in the nomination.

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