What are the Rules as to the Determination of the Amount of Gratuity under the Payment of Gratuity Act, 1972?

But where the date of superannuation is known, the employee himself may apply to the employer before 30 days from the date of his superannuation or retirement. [Sec. 7(1)] and Rule 7(1)]

The application for gratuity may be sent to the employer by (a) A nominee of an employee who is eligible for payment of gratuity within thirty days from the date of the gratuity became payable to him; [Rule 7(2)].

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(b) A legal heir of the employee eligible for the payment of gratuity shall apply ordinarily within one year from the date of gratuity became payable to him by the employer [Rule 7(3)].

The application for the payment of gratuity field after the expiry of the specified time limit shall be entertained by the employer if the applicant adduces sufficient cause for the delay [Rule 7(5)].

Determination of gratuity

The amount of gratuity as soon as it becomes payable, shall be determined by the employer according to the provisions of the Act. The employer shall give a notice in writing to the person to whom the gratuity is payable (i.e., employee, nominee or heir of the employee).

Notice shall also be given to the controlling authority specifying the amount of gratuity so determined to be payable. This exercise is to be done by the employer irrespective of the fact whether an application for the payment of gratuity has been made or not by the person concerned. [Sec. 7(2)]

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