Section 53: To receive gratuity

1) The employer shall deduct an amount equivalent to eight point three and three (8.33) percent of the basic remuneration of each labour each month and deposit it for the purpose of gratuity.

2) The amount referred to in sub-section (1) shall be deposited in the Social Security Fund in the name of the concerned labour with effect from the date on which such labour begins to work.

3) Notwithstanding anything contained in sub-section (2), the employer shall, in the following circumstance, deposit such amount of gratuity as prescribed:

(a) Until the Social Security Fund is established and comes into operation, or

(b) Until the law relating to the Social Security Fund is applicable to the concerned employer.

4) The employer shall provide the gratuity referred to in sub-section (1) from the date of the commencement of this Act in the case of a labour to whom the gratuity is not required to be paid before the commencement of this Act.

5) The amount for gratuity deposited in the retirement fund or any other similar fund established under the laws in force at the time of the commencement of this Act or held in the custody of the employer shall be transferred to the Social Security Fund as prescribed after the commencement of this Act.

6) Notwithstanding anything contained elsewhere in this Section, the employer shall pay to a labour an additional amount equivalent to eight point three and three (8.33) percent of the basic remuneration of such labour if the amount for gratuity cannot be deposited for any reason pursuant to sub-section (2) or (3).

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^{1 Extracted from the Act to Amend Certain Nepal Acts, 2075 BS.}