GRATUITY COMPLIANCE CHECKLIST
For employers covered under the Payment of Gratuity Act, 1972.
Applicability
- ☐ Establishment coverage confirmed (10 or more employees)
- ☐ Notice of opening (Form A) filed with authority
- ☐ Any change / closure notices (Form B / C) filed
- ☐ Display of abstract of the Act at the workplace
Eligibility & Records
- ☐ Continuous service of 5 years verified for eligibility
- ☐ Death / disablement cases (5-year rule waived) handled
- ☐ Employee service records and dates maintained
- ☐ Last-drawn wages captured for calculation
Nomination
- ☐ Nomination (Form F) collected from employees
- ☐ Modified nominations (Form G / H) recorded
- ☐ Nomination records safely maintained
Calculation & Funding
- ☐ Gratuity computed (15 days' wages per completed year)
- ☐ Statutory ceiling applied to the amount
- ☐ Group gratuity fund / LIC scheme arranged, if opted
- ☐ Actuarial valuation obtained for provisioning
Payment & Tax
- ☐ Gratuity paid within 30 days of becoming due
- ☐ Interest paid on delayed gratuity, if applicable
- ☐ Income-tax exemption limit applied on payout
- ☐ Payment records and acknowledgements retained
Note: Gratuity becomes payable within 30 days of it falling due; delay attracts simple interest, so process eligible claims promptly.