Following a Supreme Court judgment in March 2019, teachers are now eligible for gratuity benefits under the Payment of Gratuity Act 1972, effective from April 1997. This ruling clarifies that the amended definition of 'employee' includes teachers, making them entitled to this statutory terminal benefit. The article also outlines how schools can manage their gratuity liabilities, either through a 'pay as you go' method or by establishing an approved gratuity trust.
This article is prepared to create awareness among-st CAs, Accounting/Finance Personnel Management of Schools about Supreme Court Judgment dated 07.03.2019 about Eligibility of Teachers in Schools for Gratuity Benefits under the Payment of Gratuity Act 1972. This article will also give information
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