How to Apply for Gratuity?

If you have worked for any establishment, which has more than 10 employees, for more than 5 years in continuation, you are eligible to get gratuity from your employer. This gratuity will be paid to you at the time of retirement, resignation, disability due to any disease or accident or death. If you are wondering how to apply for gratuity after resignation or retirement, I can share my experience with you. How to apply for gratuity The payment of gratuity by the employer is a way to show gratitude towards an employee for his continuous service for the establishment. There are different forms to apply for gratuity in different circumstances. Let’s have a look:

• If an employee himself applies for the gratuity, Form I should be used for application.
• If an employee's nominee applies for the gratuity, Form J should be used for application.
• If an employee’s legal heir applies for the gratuity, Form K should be used for application.

You have to fill the form and submit it along with a copy of your bank passbook or a cancelled cheque. Within 30 days of submission you will get your gratuity amount transferred into your bank account. How to calculate gratuity You can calculate the gratuity using a simple formula which is as follows: Gratuity = N X B X 15 ÷ 26 Where, N = Number of years of service in the establishment B = Basic salary last drawn by you + DA Or There are various online gratuity calculators available on different websites which can be used to calculate your gratuity. This is the complete process on how to apply gratuity online.

If you want to know how to apply gratuity claim, read it here.

Gratuity is a mandatory benefit provided to employees by their employers. It is a token of appreciation for the long term and continuous service to the organization.

Here's a step-by-step guide on how to apply for gratuity before resignation:

A minimum of 5 years of continuous service with your employer is a must requirement. It can also be paid before completing 5 years in cases of death or disability.

The gratuity is for both the private and public sector employees.

If you are resigning or retiring, provide a written notice to your employer.

Your employer will initiate the gratuity payment process.

Application for Gratuity by an Employee:

After the calculation of the gratuity amount, the employer will provide you with a formal application form for gratuity.

Submit the below documents along with your application:

• Proof of identity (Aadhar card, passport, etc.)

• Proof of address

• Bank account details for gratuity payment

• Service certificate

• Any other documents requested by your employer

The employer will verify your application and documents.

Once it is verified, your employer will make the payment within 30 days from the date of your application.

Keep Records:

In the process of

application for gratuity after resignation or even before,

make sure to maintain a copy of all documents to follow up with your employer.

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Process of application for gratuity claim

In India, a gratuity is a type of benefit given to an employee by their employer in exchange for the services they have provided to the company. The 1972 Payment of Gratuity Act controls it. An employee must have worked for the company for at least five years continuously in order to be eligible for a gratuity. The formula used to determine the gratuity payable is as follows:

Gratuity = (15/26) * (latest paycheck) (number of years of service)

The phrase "last drawn salary" refers to the employee's base pay plus any relevant dearness allowance at the time of their departure from the company.

An employee who has been terminated from their position may be entitled to gratuity by making a formal claim to their employer. Within 30 days of receiving the application, the employer must make payment.

For further information on how to claim gratuity, it is advised to review the company's gratuity policy and speak with the HR department.

How can I get gratuity after resignation?

Applying for a gratuity in India involves the following steps:

1. Determine eligibility: Verify that you satisfy the Payment of Gratuity Act of 1972's qualifying requirements before accepting a gratuity.

2. Calculate the amount of the tip: Determine your eligibility for a gratuity by multiplying your last drawn salary by the number of years of service.

3. Assemble the relevant paperwork: Gather all necessary paperwork, such as your pay stubs, appointment letter, and evidence of employment.

4. Employer application submission: Send your employer a detailed application and the required paperwork. The controlling authority will then review your application when it has been processed by your employer.

5. Payment and approval: Your application will either be accepted or rejected by the controlling authority. Your employer will provide you with the gratuity money if it is accepted.

You can go to the labour court or the Employees' Provident Fund Organization if there is a dispute.

How to claim gratuity online in India?

To claim gratuity in India, follow these steps:

1. Verify your eligibility for a gratuity under the 1972 Payment of Gratuity Act.

2. Gather the required paperwork, such as your appointment letter, pay stubs, and service records.

3. The Payment of Gratuity Act, 1972's Form F should be filled out and given to your employer.

4. Your employer will check the form and figure out how much gratuity to provide.

5. Your employer will issue a Gratuity Payment Order after determining the gratuity amount.

6. To have the gratuity amount credited to your account, present the Gratuity Payment Order to your bank.

7. Your company could occasionally let you submit a gratuity claim online using the Employees' Provident Fund Organization (EPFO) portal or their HR portal.

I hope I was able to help you understand how to claim gratuity online in India.

Read More: What is Gratuity Fund? How to Apply for Gratuity After Resignation?  How to Claim Gratuity Amount: A Complete Guide? 

Hey Pal,

Before knowing, how to get gratuity amount from company? I would like to say that  both employees who are covered by the Payment of Gratuity Act, 1972, and those who are not covered by the Act are subject to India's gratuity regulations. The Payment of Gratuity Act, 1972 governs establishments and businesses with ten or more employees in terms of their eligibility for gratuities. 

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It is noteworthy that Central and State Government personnel are subject to their own service regulations for gratuity payment and are not covered by the gratuity rules established under the Payment of Gratuity Act, 1972.

I have gone through Dhawan’s answer and I have followed the exact steps that he mentioned on how to claim gratuity amount. I simply followed the formula, (Last Drawn Monthly Salary) x (15/26) x (Number of years of service completed) to get an estimate of the gratuity amount that I will get.

Mr. Dhawan also answered about how to claim gratuity online and offline process. You can definitely follow the steps that he mentioned as it really helps in successfully claiming the gratuity.  The amount of the gratuity must be paid by the employer to the recipient within 30 days of the date it was billed in their favour.

However, if the employer fails to make the payment by the deadline, he will be responsible for paying simple interest on a comparable sum starting on the day the gratuity becomes due, up to the maximum rate allowed by the government.

It should be emphasised that the gratuity payment should only be made in cash if the employee, nominee, or legal heir requests a demand draft or bank cheque instead.

I would like to conclude here on how to get gratuity amount from company. I hope this helps:)

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If you are an employed individual, you must have heard about the word’ gratuity’ from the HR department or your coworkers. I did not understand the true meaning of the concept until a few months ago when a friend of mine crossed 6  years in a company and received gratuity for her services. 

 

Earlier on, the answer to how to claim gratuity was the offline method. Now, all the processes have moved online, making it easy for people like me. Now, let me share with you details about both the processes.

Offline Process :

• To claim gratuity, you will have to dutifully fill and submit gratuity form I. 

• You will have to give a bank passbook copy or cancelled cheque along with the form. 

• Once all the documents have been submitted. 

• Details of gratuity will be verified. 

• Within the next 15-30 days your gratuity amount will be credited into your bank account by your employer. 

Gratuity is the monetary amount that is payable to the employee of an organisation Under the Payment of Gratuity Act 1972, gratuity is paid to employees as a token of appreciation for all of their hard work. 

Eligibility for Receiving Gratuity :

• The employee has to be eligible for superannuation.

• The employee should have retired. 

• The employee must have resigned after completing 5 years with the same employer.

How to apply for gratuity online?

• This is how to apply for gratuity in Assam. The authority in charge is District Asst. Labor Commissioner, labor Officer (Independent).

• One will have to avail of Application in Form- I, Form-J and Form K or Form- N depending on the certificate. 

• A person will have to file an appeal to the Labor Commissioner, Assam via the official website. 

• The link for which is

  https://labourcommissioner.assam.gov.in/how-to-categories/how-to-claim-gratuity

• Once the appeal is filed and verified, you will get gratuity.

I hope all your doubts about how to claim gratuity have been cleared. An employer cannot deny an employee gratuity, even if the claiming period is absent.

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