Gratuity Nomination Form: Detailed Information To Make Gratuity Nominee
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Gratuity Nomination Form: Detailed Information To Make Gratuity Nominee

December 2, 2022
HR Toolkit
What Is Gratuity Nomination Form Detailed Information You Need Before You Make Nominee

If you are a government employee then most probably know about Indian Govt. forms. But as many people are working in private and they need to know about the gratuity form and gratuity nomination form.

If you’re a salaried person, it’s important to make sure you nominate the right beneficiaries for your gratuity funds. To understand gratuity fund and its nomination benefits just read this blog.

Let’s deep dive to understand this government form.

  • Usually, gratuity is payable to an employee if they leave an organization after the completion of 5 years of continuous service.
  • However, just in case of a death of an employee, the gratuity amount is going to be payable to the nominee irrespective of whether the 5 years have been completed or not.

What is a Gratuity Fund in Salary?

Gratuity is the amount paid under the Payment of Gratuity Act 1972 to an employee. 

Gratuity is a component of an employee’s gross salary as benefits.  But an employee can receive a gratuity fund from an organization only after completing 5 or more years within the organization.

What is Gratuity Fund Calculation Formula?

There is a single formula to calculate the gratuity fund for an employee which is;

Gratuity Fund= Amount of Years x Salary Including DA  x15/26

I hope this explanation of the formula is helpful to you.

Eligibility Criteria To Receive Gratuity

These employees are eligible for receiving gratuity funds:

  • Who has worked for an organization for a minimum of 5 years and then resigned?
  • An employee who has retired from work is eligible.
  • People who are eligible for superannuation.
  • An employee who suffers from a disability or has passed away due to an illness or accident.

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Who Are You Able To Nominate To Receive Your Gratuity Proceeds?

An employee can nominate family members and if there’s no ‘family’ member, only then can they nominate anyone else.

As per the gratuity act,

  • A male member is defined as a wife, children, dependant parents, dependent parents of his wife, and therefore the widow and children of his predeceased son.
  • For the female employee, family is defined as her husband, her children (, her dependant parents, the dependant parents of her husband and widow and the youngsters of her predeceased son.

When Are You Alleged To File Nomination For Gratuity?

Under the act, a gratuity nomination form is required to be made by an employee within 30 days of the completion of 1 year of service. 

How To Nominate Someone For Your Gratuity?

The nomination in gratuity nomination Form PDF is required to be submitted by an individual with his/her employer. By getting and filling out the gratuity nomination form, it makes clear about the nomination after their marriage.

How To Fill Gratuity Nomination Form F?

One of the crucial documents to be included in every organization’s- gratuity form and gratuity nomination form.  We already talked about the gratuity form, now another one can be filled out by the employee on their joining day. Employees who have served an organization in accordance with the provisions of the Gratuity Act of 1972 for 5 years continuously are eligible for a gratuity as an old-age pension. Under this act, you need to add a nominee to get the gratuity, after illness or death.

You can download this gratuity nomination form from the HR toolkit of UBS. After that,

  • Start the row by filling in your name.
  • Check the clause where you will have to choose if your father/mother/ husband’s father/mother/parents are not dependent on you.
  • Check the clause which specifies if you have excluded your husband’s name from your family in terms of the proviso to clause (h) of section 2 of the said act.
  • Check other clauses that will further say that your current nomination invalidates all of your previous nominations.
  • You need to mention the full name and address of the nominee, after deciding. Add the connection of the nominee with the employee, the age of the nominee, and therefore the proportion by which the gratuity will be shared.
  • You need to fill in all the details in the statement, the name, religion, sex, legal status, department/branch where employed and date of appointment, permanent address.
  • You need to enter the full name and address of the witness along with the signature of the witness with the date and place.
  • Find the certificate from the employer where you are not required to fill anything. That section is filled up by the employer.

Employees should receive their gratuity amount even when in case of death well before 5 years. Before understanding the gratuity nomination meaning, you should be sure enough about the appropriate recipients to be named for your gratuity profits if you are a salaried employee.

You can download the gratuity nomination form from UBS HR Toolkit.

Gratuity Nomination Form

Note: This letter will be useful to you! You can edit it, as your needs and requirements.

When Do You Have To Submit A Nomination For A Gratuity?

A gratuity nomination must be submitted by an employee within 30 days of the top of their 1st year of employment to be considered under the Gratuity Act. Actually, employers demand that new hires submit the nomination form once they first join the company. As a result, you would possibly verify with your employer regarding submitting the gratuity nomination form if you are unsure.

Conclusion,

Don’t we all love to get money even after retirement? Yes, everyone loves it. Gratuity is one of the terms that gives happiness to all employees.  Gratuity may be a form of reward that an employer gives to his/her employee in order to acknowledge and appreciate their hard work and services. In that case, making a nominee for the gratuity is very important. As we provide the total knowledge about the nomination process and form you can easily make the process smooth.

We have also an HR Toolkit to get the government form and letters to know better about other processes. UBS is one, that provides an HRMS Software platform to regulate compliance and manage taxes, just go and check how it can be useful for you.

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Alpesh Vaghasiya

Alpesh Vaghasiya

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