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State of Maharashtra - Section

Section 5 in The Maharashtra Housing and Area Development Authority Employees Gratuity Regulations, 1985

5. Amount of gratuity.

(1)Subject to the provisions of these regulations, the amount of gratuity payable to an employee shall not exceed twenty months wages.
(2)The amount of gratuity payable to an employee for each completed year of service or part thereof in excess of 120 days shall be equal to an amount of fifteen days wages payable to him during the month immediately preceding the month in which gratuity becomes payable.
(3)Where an employee is on half pay leave; or on leave without pay during the month immediately preceding the month in which the gratuity become payable under these regulations, then for calculating the amount of gratuity payable to such employee, the fact that such an employee had been on half pay leave or leave without pay in such month, as the case may be, shall be ignored and he shall be deemed to have drawn the wages which he would have drawn had he not been on leave as aforesaid during the said period.
(4)Subject to the limit of the amount of gratuity provided in clause (1), the amount of gratuity payable to an employee on his disablement or to his nominee or heir on his death; while in service, under these regulations shall be increased -
(a)by an amount equal to two months wages, if the disablement or death has occurred after one completed year of service but before completion of two years;
(b)by an amount equal to four months wages, if the disablement or death has occurred after two completed years of continuous sendee but before the completion of three years;
(c)by an amount equal to six months wages if the disablement or death has occurred after three completed years of continuous services but before the completion of four years;
(d)by an amount equal to eight months wages if the disablement or death has occurred after four completed years of continuous service but before the completion of five years;
(e)by an amount equal to ten months wages if the disablement or death has occurred after five completed years of continuous services.
(5)The amount of gratuity payable under these regulations in excise of disablement or death of an employee, during the course of his service shall be in addition to the payment admissible to him under the Workmen's Compensation Act, 1923 (8 of 1923).