Payment of Gratuity Act 1972

Under the Payment of Gratuity Act, 1972 the maximum gratuity payable is

• Rs. 20 lakhs

• Rs. 8 lakhs

• Rs. 5 lakhs

• Rs. 3.5 lakhs

What is the qualifying service to claim gratuity?

• 15 years

• 10 years

• 5 years

• No such prescription

Payment of Gratuity Act, 1972 is applicable to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishment in a State, in which --------- persons are or were employed on any day in the preceding 12 months.

• 10 or more

• less than 10

• 20

• None of the above

For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of -------- days’ wages based on the rate of wages last drawn by the employee concerned

• 25 days

• 20 Days

• 15 days

• 10 days

In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by ----------- and multiplying the quotient by fifteen.

• 30

• 15

• 26

• 28

In the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of --------days’ wages for each season.

• 15

• 20

• 9

• 7

The formula for calculating gratuity is

• Gratuity = (Monthly Salary/25) X 15 X No. of years of service

• Gratuity = (Monthly Salary/30) X 15 X No. of years of service

• Gratuity = (Monthly Salary/26) X 15 X No. of years of service

• Gratuity = (Monthly Salary/15) X 15 X No. of years of service

The employer shall arrange to pay the amount of gratuity within --------- days from the date it becomes payable.

• 30 days

• 15 days

• 45 days

• 60 days

Ajanta joined SMCS Pvt Ltd as an apprentice on 02/01/2015. She was confirmed and given the Junior Engineer post on 05/05/2016. She went on Maternity leave on 25/05/2018. She rejoined her duties on 02/01/2019. She resigned on 05/08/2021. Calculate her gratuity amount if her last drawn salary was Rs. 30000.

• Rs. 86,538

• Rs. 86, 825

• Rs. 87, 878

• Rs. 87, 569

Amit joins PC Company on 16/02/2018. He resigns on 16/09/2022. How many years of gratuity will he be eligible for?

• 5 years

• 4 years

• 4 years 7 months

• Not eligible for Gratuity