Gratuity is a retiral benefit. As per the Payment of Gratuity Act 1972, this policy rewards the loyalty of those employees who have provided long and unblemished service to One2N.
What is the benefit?How is your gratuity calculated?Gratuity payment in case of death or disablement of an employeeGratuity nomineeHow and when will the gratuity payment be made?Exceptions and Forfeitures
Gratuity is a one-time lump sum payment made by One2N to the employee at the time of their retirement or resignation from the company, provided they have completed a tenure of at least 5 calendar years in One2N. The gratuity received by the employee is fully tax-exempt up to Rs. 20,00,000 /-, after which regular taxation applies.
Total gratuity payment = (Your monthly basic salary at the time of exit/retirement) x (total tenure in years) x (15/26)
For e.g., if your basic salary at the time of exit is Rs.1,00,000 /- per month and you have a tenure of 5.5 years before exit, then the Gratuity you will receive at the time of exit will be:
100000 x 5.5 x (15/26) = Rs.3,17,308 /-
In the unfortunate event of the employee’s death or disablement during their employment with One2N, their nominee shall be given the gratuity payment by One2N, regardless of the employee's tenure. In such cases, the gratuity amount is calculated as per the following table:
Tenure of the employee before death / disablement
Less than 1 calendar year
(Basic salary of employee) x 2
1 calendar year or more but less than 5 years
(Basic salary of employee) x 6
5 calendar years or more but less than 11 years
(Basic salary of employee) x 12
11 calendar years or more but less than 20 years
(Basic salary of employee) x 20
20 calendar years or more
Half the basic salary for each completed 6 month period, subject to a maximum of 33 times the basic salary
Kindly note that the maximum gratuity amount that can be provided by One2N in the event of the employee’s death or disablement will be Rs. 20,00,000 /-
Usually, the gratuity payment is made to the employees themselves.
However, every employee needs to provide the details of their respective nominee who can receive the gratuity payment on their behalf in case of their death or disability (see above).
Gratuity payment will be made in the employee’s salary account along with the full and final settlement at the time of their retirement/exit from One2N within 30 days of the last working date. Kindly note that Gratuity can only be paid to eligible employees at their retirement/exit from One2N, not anytime before that.
The gratuity of an employee whose service has been terminated for any Act of wilful omission or negligence causing any damage or loss to or destruction of property belonging to the employer, gratuity shall be forfeited to the extent of the damage or loss caused. The right of forfeiture is limited to the extent of the damage.
The gratuity payable to an employee shall be wholly forfeited:
- If the services of such employee have been terminated for indiscipline, riotous or disorderly conduct, or any other act of violence on their part, or
- If the service of such an employee has been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by them in the course of their employment.