Login

Sign Up

Create an account to access the Law Library, all latest notifications, Minimum Wages & other events.

PAYMENT OF GRATUITY ACT

1972

ABOUT THE ACT

Objectives:

The Payment of Gratuity Act provides for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments. The Act enforces the payment of gratuity, a reward for long service, as a statutory retiral benefit.

Applicability

The Payment of Gratuity Act extends to the whole of India and is applicable to all factories, mines, oilfields, plantations, ports, railway companies and any establishments where 10 or more persons were employed on any day of the preceding 12 months and every Shop and Establishment of that State, in which 10 or more persons are employed, or were employed on any day in the preceding 12 months. Every employee irrespective of his wages is entitled to receive gratuity if he has rendered continuous service of 5 years or more than 5 years. The Act is not applicable to apprentices and persons holding a post under the Central or State government who are governed by any other rule providing for payment of gratuity. The last drawn salary including Basic and Dearness allowance(DA). The maximum gratuity payable is Rs 20,00,000.

Related Sections Of The Act

Section 1:  Short, title, extent, application and commencement
Section 1:  Short, title, extent, application and commencement
Section 14:  Act to override other enactments, etc
Section 14:  Act to override other enactments, etc

Important Definitions

Section 2A:  Appropriate Government
Section 2A:  Appropriate Government
Section 2E:  Employee
Section 2E:  Employee
Section 2F:  Employer
Section 2F:  Employer
Section 2G:  Factory
Section 2G:  Factory
Section 2I:  Major portr
Section 2I:  Major portr
Section 2J:  Mine
Section 2J:  Mine
Section 2L:  Oilfield
Section 2L:  Oilfield
Section 2M:  Plantationr
Section 2M:  Plantationr
Section 2N:  Port
Section 2N:  Port
Section 2P:  Railway company
Section 2P:  Railway company
Section 2S:  Wages
Section 2S:  Wages

Related Notifications

S.O. 837(E) -   Dates on which act comes into force in different establishments dated 12-October-1995
S.O. 837(E) -   Dates on which act comes into force in different establishments dated 12-October-1995
S.O. 837(E) -   Dates on which act comes into force in different establishments dated 12-October-1995
S.O. 837(E) -   Dates on which act comes into force in different establishments dated 12-October-1995
F.No S-42013/1/95-SS -   Application of Act to Educational Establishments dated 3-April-1997
F.No S-42013/1/95-SS -   Application of Act to Educational Establishments dated 3-April-1997
F.No S-42013/1/95-SS -   Application of Act to Educational Establishments dated 3-April-1997
F.No S-42013/1/95-SS -   Application of Act to Educational Establishments dated 3-April-1997
S.O. 2218 -   Application of Act to Trusts or Societies dated 31-December-1972
S.O. 2218 -   Application of Act to Trusts or Societies dated 31-December-1972
S.O. 2218 -   Application of Act to Trusts or Societies dated 31-December-1972
S.O. 2218 -   Application of Act to Trusts or Societies dated 31-December-1972