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GRATUITY ACT
Payment of Gratuity Act, 1972 Compliance
Honor your employees' service with accurate gratuity payments, manage your liability effectively, and ensure full legal compliance.
Introduction and Value Proposition
The Payment of Gratuity Act rewards long-term service by providing a financial token to employees upon retirement, resignation, or superannuation after five years of continuous service. While a valued benefit, calculating the correct amount, understanding continuous service, and adhering to strict timelines is complex and prone to error. Mistakes can lead to employee disputes and penalties. PCS provides expert gratuity advisory and calculation services, ensuring accurate payouts, s
Why Choose PCS?
● Calculation Precision: We ensure every calculation is accurate, protecting you from financial loss and disputes.
● Deadline Management: We help you process payments within the mandatory 30-day window to avoid interest penalties.
● Strategic Advisory: We provide advice beyond compliance, helping you structure your gratuity liability for financial efficiency.
Key Challenges We Solve
● Complex Calculations: Difficulty in accurately calculating the gratuity amount based on last drawn wages and years of service.
● Eligibility Disputes: Confusion over what constitutes "continuous service" and which employees are eligible.
● Timely Payment: Risk of missing the strict 30-day payment deadline after the application is received, attracting interest penalties.
● Liability Management: Challenges in planning for and funding this significant financial liability.
Our Gratuity Act Services
Eligibility Verification
Determining which employees are eligible for gratuity based on their service tenure.
Accurate Calculation
Expert computation of the gratuity amount payable using the formula: (Last drawn salary * 15/26 * Number of years of service).
Payment Processing Guidance
Advisory on the correct process and timelines for disbursing gratuity payments.
Nomination Management
Assistance with the employee nomination process and maintenance of records
Liaison with Authorities
Support in responding to any notices from the Controlling Authority under the Act
Advisory on Funding
Guidance on options for managing gratuity liability, such as gratuity trusts or insurance products.
Frequently Asked Questions
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