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The Payment of Gratuity Act 1972

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

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

a)

Rs. 10 lakhs

b)

Rs. 8 lakhs

c)

Rs. 5 lakhs

d)

Rs. 3.5 lakhs

2.

What is the qualifying service to claim gratuity?

a)

15 years

b)

10 years

c)

5 years

d)

No such prescription

3.

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.

a)

10 or more

b)

less than 10

c)

20

d)

None of the above

4.

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

a)

25 days

b)

20 Days

c)

15 days

d)

10 days

5.

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.

a)

30

b)

15

c)

26

d)

28

6.

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.

a)

15

b)

20

c)

9

d)

7

7.

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

a)

15 days

b)

20 days

c)

30 days

d)

75 days

8.

The formula for calculating gratuity is

a)

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

b)

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

c)

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

d)

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

9.

Which section deals with the determination of the amount of gratuity

a)

Sec 4

b)

sec 6

c)

sec 7

d)

Sec 8

10.

For avoiding any payment knowingly makes any false statement or representation shall be punishable with

a)

imprisonment upto 3 months or fine upto Rs. 10,000/- or both

b)

imprisonment upto 6 months or fine upto Rs. 10,000/- or both

c)

imprisonment upto 3 months or fine upto Rs. 20,000/- or both

d)

imprisonment upto 6 months or fine upto Rs. 20,000/- or both

11.

Failure to comply with any provision of the Act or Rules shall be punishable with

a)

imprisonment upto 1 year or with fine extend upto Rs. 10,000/- or with both

b)

imprisonment upto 1 year or with fine extend upto Rs. 20,000/- or with both

c)

imprisonment upto 2 year or with fine extend upto Rs. 20,000/- or with both

d)

imprisonment upto 2 year or with fine extend upto Rs. 50,000/- or with both

12.

The eligibility condition for obtaining gratuity under the Payment of Gratuity Act, 1972 is

a)

Completion of 2 years of Service

b)

Completion of 3 years of Service

c)

Completion of 4 years of Service

d)

Completion of 5 years of Service

13.

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.

a)

30

b)

15

c)

26

d)

25