GRATUITY
1) Payable on superannuation retirement,
voluntary retirement, resignation after 10 years of service, death of the
employee, incapacitation, termination of service.
2) Service of 6 months and above will be
reckoned as one year.
3) 26 days is construed as a month.
4) BP & all other allowances
qualifying for PF & incremental portion of FPP are eligible for gratuity.
5) Gratuity cannot be forfeited under any
circumstances except in case of dismissal where bank has incurred loss due to
misconduct of the employee.
A-as
per gratuity act:
Half a month
of last wages drawn for each completed year of service. Wages includes BP +
special allowances ranking for PF + FPP (DA & incremental component) + DA
Gratuity
amount = wages × no. of yrs of service × 15/26
WITH A
MAXIMUM OF RS.10,00,000/-
B-
as per BPS:
One month
pay for each completed year of service with a maximum of 15 years + ½ month pay
for every year of service beyond 30 years (maximum 33 years of service.)
Pay means
average of last 12 months of BP + all allowances ranking for PF +
Incremental
component of FPP
Higher of A
& B above
Gratuity
amount is exempt from income tax up to the limit of Rs.10,00,000/-