I received a query regarding the payment of gratuity under Pakistani Law. The relevant provision in Labor Law is Standing Order 12(6).
The employer has to either pay gratuity or contribute towards a provident fund or a pension fund. If there is a provident fund in existence where the employer pays equal to the contribution of the workman, there is no gratuity. The gratuity is equal to thirty days wages – gross- calculated on the basis of the last wages received if he is a fixed rate workman and/or the highest wage in the last twelve months if he is not, for every year of service.
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I have a follow up question. My current employer has no provident fund or gratuity in place. All they offer is the EOBI fund contribution. I would like to know if this is legal? Also does gratuity apply to people with certain wage amounts only?
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I want to know about Gratuity Law in Pakistan.
ReplyDelete(Indian Law is clear about Gratuity but in Pakistan it is not clear,
only depends on Factory Management rules. Plz. Provide me in detail All Employees are elligible for Gratuity or only Low workers.
I am working in a factory few days before my GM said that all Supervisor, Senior fitters, Foreman, senior Clerk section Incharge are not elligible in title of Gratuity. I want to clear as per Pakistan Labor Law. plz.
thanks
I need your help in understanding gratuity fund transfer to employee. My company had gratuity policy since 4 years, now they have stopped/seized it and introduced provident fund in-place according to law. Now the issue is company is saying that they will give the gratuity amount of four years according to my current salary when I will leave the company as par Pakistan gratuity law. Lets say my current salary is 30K then they will give me 4x30K=120K, however I will be leaving may be in two or three years for example. But at that time my salary would be around 50K . So, I am saying that my gratuity should be for example 4*50K= 200K. But company is saying that they have seize the gratuity and introduced provident fund against it.
ReplyDeleteSo the employees of the company are saying that either the company should give the gratuity amount now or they should consider the current salary when the employee will be leaving since it is also a gratuity law that the Gratuity= last salary drawn x no. of service years. Since the gratuity amount is of employee and as time passes for example in 2 or more years this money is valued down.
I want to know what is the law is saying in such scenario.
hi
ReplyDeleteIf there is a provident fund in existence where the employer pays equal to the contribution of the workman, there is no gratuity. mobile notary services in los angeles
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ReplyDeleteThere are a variety of legal guidelines set up to shield individuals from unjust treatment while at work. Quite often, when such policies are violated, this is a civil rights violation. Pace Law Firm
ReplyDelete1- gratuity is calculated on basic or gross salary?
ReplyDelete2- If a EOBI registered employee requires gratuity provision?
My job is finished 08 days before end of 1 year(first year)can i eligible for graduity.please tell me thanks.
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ReplyDeletei have a question if a organization is contributing in Volunteer Pension Scheme than on completion of services employee is liable for gratuity or not
I am genuinely impressed by the way you detailed out everything. It's genuinely going to help me lots. Thanks for sharing your thoughts so clearly.
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