Pay­ment of Gra­tu­ity Act 1972.

Important mcq one liner points on  Pay­ment of Gra­tu­ity Act 1972.


1. Un­der the Pay­ment of Gra­tu­ity Act, 1972 the max­i­mum gra­tu­ity payable is Rs. 10 lakhs.


2. 5 years is the qual­i­fy­ing ser­vice to claim gra­tu­ity.


3. The el­i­gi­bil­ity con­di­tion for ob­tain­ing gra­tu­ity un­der the Pay­ment of Gra­tu­ity Act, 1972 is
Com­ple­tion of 5 years of Ser­vice.


4. The max­i­mum amount of gra­tu­ity has now been en­hanced to Rs. 10 lakhs from 3.5 lakhs.


5.   Pay­ment of Gra­tu­ity Act, 1972 is ap­plic­a­ble to every shop or es­tab­lish­ment within the mean­ing of any law for the time be­ing in force in re­la­tion to shops and es­tab­lish­ment in a State, in which 10 or more per­sons are or were em­ployed on any day in the pre­ced­ing 12 months.   


6. For every com­pleted year of ser­vice or part thereof in ex­cess of six months, the em­ployer shall pay gra­tu­ity to an em­ployee at the rate of 15 days’ wages based on the rate of wages last drawn by the em­ployee con­cerned 


7. In the case of a monthly rated em­ployee, the fif­teen days’ wages shall be cal­cu­lated by di­vid­ing the monthly rate of wages last drawn by him by 26 and mul­ti­ply­ing the quo­tient by fif­teen. 


8. In the case of an em­ployee who is em­ployed in a sea­sonal es­tab­lish­ment and who is not so em­ployed through­out the year, the em­ployer shall pay the gra­tu­ity at the rate of 7 day's wages for each sea­son. 


9. The em­ployer shall arrange to pay the amount of gra­tu­ity within 30 days days from the date it be­comes payable. 
  

10.  Ap­peal on the de­ci­sion of con­trol­ling au­thor­ity should be pre­ferred within 60 day's  from the date of the or­der.


11.The for­mula for cal­cu­lat­ing gra­tu­ity is  

Gra­tu­ity = (Monthly Salary/26) X 15 X No. of years of ser­vice 


12. For avoid­ing any pay­ment know­ingly makes any false state­ment or rep­re­sen­ta­tion shall be pun­ish­able with  
(a) im­pris­on­ment upto 3 months or fine upto Rs. 10,000/- or both 


13. Fail­ure to com­ply with any pro­vi­sion of the Act or Rules shall be pun­ish­able with im­pris­on­ment upto 1 year or with fine ex­tend upto Rs. 20,000/-  or with both.


14. Which sec­tion deals with the de­ter­mi­na­tion of the amount of gra­tu­ity Sec­tion 7 .


15. The Pay­ment of Bonus Act, 1965 is ap­plic­a­ble to an em­ployee who draws wage or salary of
Rs. 10,000 in case of em­ployee only.


16.Pay­ment of Bonus Act 1965 is ap­plic­a­ble to every fac­tory and to every other es­tab­lish­ment where 20 or more work­men are em­ployed on any day dur­ing an ac­count­ing year 


17. Every em­ployee re­ceiv­ing salary or wages upto RS. 3,500 p.m. and en­gaged in any kind of work whether skilled, un­skilled, man­age­r­ial, su­per­vi­sory etc. is en­ti­tled to bonus for every ac­count­ing year if he has worked for at least 30 work­ing day's in that year. 


18.  The min­i­mum bonus which an em­ployer is re­quired to pay even if he suf­fers losses dur­ing the ac­count­ing year or there is no al­lo­ca­ble sur­plus is 8.33 % of the salary or wages dur­ing the ac­count­ing year.


19.  If in an ac­count­ing year, the al­lo­ca­ble sur­plus cal­cu­lated af­ter tak­ing into ac­count the amount ‘set on’ or the amount ‘set of’ ex­ceeds the min­i­mum bonus, the em­ployer should pay bonus in pro­por­tion to the salary or wages earned by the em­ployee in that ac­count­ing year sub­ject to a max­i­mum of 20 % of such salary or wages.
  

20. The bonus should be paid in cash within 8 month's from the close of the ac­count­ing year.


21. The em­ployer has to sub­mit an an­nul re­turn of bonus paid to em­ploy­ees dur­ing the year, in Form D, to the In­spec­tor, within 30 days of the ex­piry of the time limit spec­i­fied for pay­ment of bonus. 


22.The con­tra­ven­tion of the pro­vi­sions of the Act or rules may at­tracts the pun­ish­ment of  im­pris­on­ment upto 6 months, or fine up to Rs.1000, or both.


23. Sec­tion 32 is states about the classes of em­ploy­ees where Pay­ment of Bonus Act is not ap­plic­a­ble.