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.
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.
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.
These employees are eligible for receiving gratuity funds:
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,
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.
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.
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,
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.
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.
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.