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Gratuity
Lolest!
#1 Posted : Tuesday, June 28, 2011 8:05:48 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
Is it a legal requirement? If it is, who qualifies for it and how is it calculated?
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youcan'tstopusnow
#2 Posted : Tuesday, June 28, 2011 8:31:14 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Lolest!, sorry for intruding into your thread, but I just have to ask this question:

Has Wazua closed/banned/forbidden posting on the Julie Gichuru thread? The place for Quick Reply or Post Reply is not even there.
Ama ni mimi pekee yangu?
GOD BLESS YOUR LIFE
Sober
#3 Posted : Tuesday, June 28, 2011 11:07:09 PM
Rank: Elder

Joined: 11/27/2007
Posts: 3,604
youcan'tstopusnow wrote:
Lolest!, sorry for intruding into your thread, but I just have to ask this question:

Has Wazua closed/banned/forbidden posting on the Julie Gichuru thread? The place for Quick Reply or Post Reply is not even there.
Ama ni mimi pekee yangu?



the admin is truing to maintain respect because am sure theey envisaged that thread being personal attack to a prominent figure in the media sector. A number of my posts were also erased so usijali sana braza.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
Sober
#4 Posted : Tuesday, June 28, 2011 11:11:31 PM
Rank: Elder

Joined: 11/27/2007
Posts: 3,604
Gratuity (others call it service) to me depends on the companies practice and it is not a policy. Most firms do it if you stay with them for over a year and it depends with your position, salary, sensitivity o the job and information you may be going with, your mode of departure among others.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
Elder
#5 Posted : Wednesday, June 29, 2011 12:38:37 AM
Rank: Elder

Joined: 9/7/2010
Posts: 2,148
Location: elderville
Lolest! wrote:
Is it a legal requirement? If it is, who qualifies for it and how is it calculated?


It is only mandatory in case of redundancy. Otherwise an employee would only get it if the employer is 'feeling philanthropic enough'.
He who can express in words the ardour of his love, has but little love to express. - Petrach, Son. (That men by various ways arrive at the same end. - Montaigne, The Essays of.)
Gordon Gekko
#6 Posted : Wednesday, June 29, 2011 7:37:01 AM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
Gratuity is offered where you are on contract for a specified term and the company doesn't ordinarily offer any pension contribution. It is to compensate you for what the would have otherwise paid in pension on your behalf. It is a bonus, not a legal requirement but has to be spelt out clearly in the contract
Sasha
#7 Posted : Wednesday, June 29, 2011 8:53:05 AM
Rank: Veteran

Joined: 9/5/2007
Posts: 627
@Elder it is not mandatory even redundancy. It is a form of saying 'thank you' for work done by an employee. If the company has no funds to pay gratuity then they don't have to i.e. unless it is expressly provided in the employment contract.

Usually it is calculated at between 1 & 2 months' salary for every year worked or a percentage of the total annual salary for years worked! Ideally it depends on how much money you have to spend on gratuity!
nostoppingthis
#8 Posted : Wednesday, June 29, 2011 9:13:54 AM
Rank: Chief

Joined: 8/24/2009
Posts: 5,909
Location: Nairobi
Gordon Gekko wrote:
Gratuity is offered where you are on contract for a specified term and the company doesn't ordinarily offer any pension contribution. It is to compensate you for what the would have otherwise paid in pension on your behalf. It is a bonus, not a legal requirement but has to be spelt out clearly in the contract


Is it to be taxed?
gohill
#9 Posted : Wednesday, June 29, 2011 9:25:16 AM
Rank: Member

Joined: 6/23/2010
Posts: 182
Location: Kenya
nostoppingthis wrote:
Gordon Gekko wrote:
Gratuity is offered where you are on contract for a specified term and the company doesn't ordinarily offer any pension contribution. It is to compensate you for what the would have otherwise paid in pension on your behalf. It is a bonus, not a legal requirement but has to be spelt out clearly in the contract


Is it to be taxed?


Yes. Gratuity is taxable at the rate prevailing when it's being processed. Just like PAYE.
'user'
#10 Posted : Wednesday, June 29, 2011 9:46:00 AM
Rank: Veteran

Joined: 12/3/2010
Posts: 1,141
Location: Londokwe
as from 2007 ,If an employee is a member of NSSF, the employer is not obliged to pay gratuity.

This leaves employees at a vulnerable position since before 2007 there was a statutory 15 days per year gratuity payment whether it was provided in the contract or not.

If you are sacked today , unless it is provided in the contract ,you can legally go home empty handed if your employer was paying for you NSSF.Na utado?

However , the 15 days per year gratuity earned upto 2006 is still payable.

2012 is here.Kenya is Ours.Be Part of The Peace Keeping Mission To Protect Our Motherland.Say No To Violence and Tribal Hatred .If you can read this,wewe ni mtu amesoma, usifikirie kama mtu hajaenda shule .Ni Hayo Tu
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