I have resigned from the company on 02.05.2024 and received the gratuity and leave encashment based on my existing salary. In June 5 2024 company has increased the salary with effect from 01-04-2024 with retrospective effect. Am I eligible for the gratuity and leave encashment on the incremental salary.
From India, Kozhikode
From India, Kozhikode
Yes. If the salary revision is a general revision applicable to all employees as part of any settlement or award then the benefit of that settlement should be available to all employees who are on the rolls on the date of effect. At the same time, if it is a revision based on performance as evidenced by a revision letter issued individually to each employee, then the company should not have given you any increment letter, and in such scenario you should not have been considered for the increase. The former things apply in PSUs and in companies where there is an organised pay system but the latter one is applicable to many more private establishments who do not follow the principles of compensation.
From India, Kannur
4218From India, Kannur
You'll have to get your 'last pay drawn' (LPC) revised/refixed w.e.f.1.4.2024 and you'll have to be paid arrears of salary for the month of April (full month) and 2 days for May'24. Once this is done you are entitled to receive the difference in gratuity & leave encashment as well on the basis of LPC.
From India, Bangalore
From India, Bangalore
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx