Gratuity Rules

1. Objective
To define the provisions under Gratuity Rules and rules for availing Gratuity benefit.

2. Applicability
All employees who are on the rolls of the Company

3. Benefits
3.1 On completion of five years of continuous service with the company, employees
are eligible for 15 days of consolidated/ basic salary for every year of service
rendered.
3.2 Services rendered for six months or more will be considered as full year for the
purpose of computing the gratuity benefit. Gratuity is computed on the last drawn
basic salary.
3.3 This benefit is payable to an employee on separation after completing qualifying
service of five years.
3.4 In case of termination, Company may forfeit the gratuity depending on gravity of
misconduct.
3.5 Additional benefit – Employees who have served for more than 30 years are
eligible to receive additional benefit for the years served beyond 30 years.
Employees are entitled for 30 days of salary for every year of services rendered
for the years in excess of 30 years.

4. Process
4.1 At the time of joining, all employees are required to submit gratuity form. They
need to declare their nominee and assign benefit percentage to them.
4.2 On separation, employee qualifying for gratuity benefit is required to submit the
form to HR department for processing.
4.3 HR department forwards the application to Accounts department after validating
the personal details. Subsequently Accounts Department issue the cheque in
favour of employees or nominee, towards the gratuity payment.
4.4 The Gratuity Fund is administered by the Company and every year actuarial
valuation of the fund is undertaken.
4.5 Company contributes to the Gratuity Fund on the basis of actuarial valuation.

5. General Guidelines
1.1 Gratuity are payable to employees on the permanent rolls of the Company.
Trainees are eligible to receive the gratuity from the date of absorption on
permanent rolls.
1.2 Gratuity payment up to Rs. 10 Lacs received during the entire service period is
tax free.
1.3 Gratuity is apportioned @7% of consolidated / basic salary in individual CTC.