Dear all
can you guide me for following question
i have recently completed my retirment age 58 on 29.09.1958 but on my request they have extended my service period for one more year at 40 % reduce salary,
my question is will i be eligible for gratuity payment after one year extended period on my old pay scale and and extended period on reduce salary , or they will calculate whole gratuity on reduce salary after extended period ?
what is the as per the law status
From India, Mumbai
can you guide me for following question
i have recently completed my retirment age 58 on 29.09.1958 but on my request they have extended my service period for one more year at 40 % reduce salary,
my question is will i be eligible for gratuity payment after one year extended period on my old pay scale and and extended period on reduce salary , or they will calculate whole gratuity on reduce salary after extended period ?
what is the as per the law status
From India, Mumbai
Hello,
Gratuity will be applicable upto retirement age as per full scale of basic.
After that I hope you have taken a separate contract. You will not be eligible for gratuity during the contractual period as you have completed your employment tenure as employee at retirement. After that you are a contractual employee.
But I would also like to know if you have a break in service? Do you have a separate contractual letter? What are the terms of the letter? The outcome of gratuity will also depend on the answers to these questions.
Warm regards,
Deena..
From India, Mumbai
46Gratuity will be applicable upto retirement age as per full scale of basic.
After that I hope you have taken a separate contract. You will not be eligible for gratuity during the contractual period as you have completed your employment tenure as employee at retirement. After that you are a contractual employee.
But I would also like to know if you have a break in service? Do you have a separate contractual letter? What are the terms of the letter? The outcome of gratuity will also depend on the answers to these questions.
Warm regards,
Deena..
From India, Mumbai
Thank you Deena , my extended service is not having any contractual agreement , its continuity of service all statutory deduction is there like PF, Professional Tax etc...only pay scale is reduce thats only .
simple letter received saying that your extension is one more granted at gross salary reduce by 40 % , so i am not able to claim retirement benefit as my service is continue as normal employee only .
but my question is that after one year completion should i get the gratuity benefit of my previous years at old salary or they will calculate the gratuity of who period of service at reduce salary ?
they have provided gratuity provision in balance sheet in all year from i am applicble with name in the financial audited balance sheet ,
From India, Mumbai
simple letter received saying that your extension is one more granted at gross salary reduce by 40 % , so i am not able to claim retirement benefit as my service is continue as normal employee only .
but my question is that after one year completion should i get the gratuity benefit of my previous years at old salary or they will calculate the gratuity of who period of service at reduce salary ?
they have provided gratuity provision in balance sheet in all year from i am applicble with name in the financial audited balance sheet ,
From India, Mumbai
Please let the forum know whether the Basic salary has been reduced or it is same i.e. the PF deduction is similar or the deduction has reduced. Secondly check your PF statement as on date
From India, Ahmadabad
From India, Ahmadabad
Dinesh Mistry,
Please note that reduction of salary / wages directly or indirectly is illegal under EPF and Payment of wages act as well. If reduction has been done by your management without any brake in service, without signing any contract etc. and continued compliance under same EPF number, they may be in trouble and be liable to contribute EPF on your higher salary (without reduction). However, employer's share towards EPS will be stopped and diverted to EPF after attaining age of 58 years.
As far as calculation of gratuity is concerned, please note that the last rate of salary (basic and da) is considered.
P K Sharma
From India, Delhi
Please note that reduction of salary / wages directly or indirectly is illegal under EPF and Payment of wages act as well. If reduction has been done by your management without any brake in service, without signing any contract etc. and continued compliance under same EPF number, they may be in trouble and be liable to contribute EPF on your higher salary (without reduction). However, employer's share towards EPS will be stopped and diverted to EPF after attaining age of 58 years.
As far as calculation of gratuity is concerned, please note that the last rate of salary (basic and da) is considered.
P K Sharma
From India, Delhi
The gratuity law says that the gratuity will be computed based on the salary last drawn
In your case, the salary last drawn is lower than the salary drawn earlier.
So you will get a lower gratuity amount.
Therefore, it is important for you to speak to the company and ensure that they will give you gratuity at the old rate, may be excluding the last year on extension. You can always dispute their working before the commissioner (authority under gratuity act), but going strictly by law you are not on strong grounds. Further, such dispute is pretty stressful and time consuming
From India, Mumbai
In your case, the salary last drawn is lower than the salary drawn earlier.
So you will get a lower gratuity amount.
Therefore, it is important for you to speak to the company and ensure that they will give you gratuity at the old rate, may be excluding the last year on extension. You can always dispute their working before the commissioner (authority under gratuity act), but going strictly by law you are not on strong grounds. Further, such dispute is pretty stressful and time consuming
From India, Mumbai
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GRATUITY EXTENDED TO TWENTY LACS - 29.03.2018.pdf
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