Introduction
Proportion by which the Gratuity will be Shared is a concept that is used to determine how much of a gratuity should be shared among the employees of a company. It is a way of ensuring that the gratuity is distributed fairly and equitably among the employees. The proportion by which the gratuity is shared is usually determined by the company’s policy or by the collective agreement between the employer and the employees. It is important to note that the proportion by which the gratuity is shared should be fair and equitable for all employees.
Proportion by which the Gratuity will be Shared Meaning
Proportion by which the Gratuity will be Shared refers to the percentage or ratio of the gratuity that will be distributed among the employees. This is usually determined by the employer and is based on the length of service, job performance, and other factors.
Gratuity proportion means the percentage of gratuity amount that the employee wants to distribute to nominees in case of his sudden death. For example, if you have registered your spouse and mother as nominees then you can allot 50% to your mother and 50% to your spouse in case of your sudden death.
There is no fixed percentage for gratuity proportion, you can share as per your wish. You can share it in 70:30 ratio, (or) 60:40 ratio, (or) 30:70 (or) 80:20 ratio, etc..
If you registered only one nominee then you can mention the gratuity proportion as 100%.
If unfortunately, the employee dies then the gratuity amount will be paid to the nominees as per the gratuity proportion mentioned in the gratuity registration form F.
How to Mention Gratuity Proportion
Gratuity proportion should be mentioned in employee gratuity registration form F. It will be given by the employer to the employee during the joining time of the employee.
On this form under the nominees section you have to mention the gratuity proportion details.
Know How to fill gratuity form F.
Who can be nominated for Gratuity
Employees can nominate any of their family members as nominees in the Gratuity scheme, outside family members will not be considered as nominees.
You can register more than one family member as nominees. In case if you don’t have any family while registering for gratuity then you can add nominees whenever you wish to add.
You can change or alter nominees in the gratuity scheme whenever you want, for that you need to provide a fresh gratuity registration form to your employer, And employers should keep a record of all gratuity registration forms of their employees.
How can Nominees Claim Gratuity
Nominees should need to fill and submit a form called Form J ( Application for Gratuity Withdrawal by nominee) to the employer of the deceased employee. If the deceased employee registers multiple nominees then each nominee should need to fill this form separately.
Along with this form, every nominee should attach a copy of their ID proof, address proof, bank passbook copy or cancelled cheque.
Once all the required documents are submitted then the gratuity amount will be distributed to the nominees as per the prescribed proportion mentioned by the employee.
FAQs
Can nominees get gratuity if the employee dies before 5 yrs of service?
Yes, in case of the death of the employee the nominees can claim for gratuity even before 5 years of the service of the member.
How much gratuity will the nominees get?
The gratuity can be calculated by using this formula
(Basic salary /26) x 15 x no of years of service.
What is the basic salary in the gratuity calculation formula ?
The basic salary means the last drawn basic wage by the employee.
Proportion by which the Gratuity will be Shared Meaning
Gratuity is a sum of money given to an employee as a reward for their services. It is usually given at the end of a contract or when an employee leaves a job. The amount of gratuity given is usually determined by the employer and is based on the length of service and the quality of work. The proportion by which the gratuity will be shared is the ratio of the amount of gratuity given to each employee.
The proportion by which the gratuity will be shared is usually determined by the employer. It is important to note that the amount of gratuity given to each employee should be equal. This means that the employer should not give more gratuity to one employee than another. The employer should also consider the length of service and the quality of work when determining the proportion by which the gratuity will be shared.
The proportion by which the gratuity will be shared can also be determined by the employees themselves. This is usually done when the employees are in a collective bargaining agreement. In this case, the employees can negotiate the amount of gratuity that each employee will receive. This is usually done in order to ensure that all employees receive a fair share of the gratuity.
The proportion by which the gratuity will be shared is an important factor to consider when determining the amount of gratuity that will be given to each employee. It is important to ensure that all employees receive a fair share of the gratuity. This will ensure that the employer is rewarding their employees for their hard work and dedication.
