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SHASHIDHAR A (Sr.Manager - HR)     12 August 2015


Respected Sirs, Query on applicability of Gratuity Act. I would like to know whether is there an INFANCY PERIOD under The Payment of Gratuity Act, 1972. This is similar to what we have under the Bonus Act, where the act is not applicable during the first 5 years of service from the date of incorporation or if the company declares profit. OR, is it mandatory to Employer to cover all employees irrespective of date of inception of the company. Kindly clarify. Thankyou Shashidhar A


 2 Replies

kameswarao S (Head HR)     12 August 2015

Gratuity to be paid to all the employees who have completed their continuous service of 5 yrs. The question of infancy period and all not arises here in the case of Gratuity and salary limitations only the limit is the maximum amount payable. 

Kumar Doab (FIN)     13 August 2015

NO infancy. The  Gratuity above tax free limit of Rs.10lacs is subjected to tax treatment.

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