Dear Sir, How to calculate Daily rated labours gratuity, this workers paid per day wage
From India, Siliguri
Gratutity is paid to employees who have comlete 5 years of conyinous service and not to daily wage employees
From India, New Delhi
Hi Barkoda,
If daily rated employee has completed 5 years of continuous service in the facility or in the case of death then he is eligible for Gratuity irrespective whether he is monthly paid or daily paid.
For daily paid employees gratuity can be calculated as follows:
Gratuity = (Daily rate of wages x 15 days) x No. of years worked in the entity
Hope this will solve your query.
Regards,
Avinash K.

From India, Mumbai
Dear all, The opinion of Mr Avinash is correct as per section 4(2) of the Payment of Gratuity Act, 1972. Sameer Paranjape , Adv ( Labour Law Consultant ) Pune , 9850083760
From India, Pune
In the case of daily rated workers, take the average of wages paid to him for the preceeding three months of his leaving. Madhu.T.K
From India, Kannur
After 240 days of working in a year in same establishment, the person shall be treated as permanent worker. In that case you need to pay the gratuity as we pay to permanent employees.
If am not wrong there is no mentioned of daily wagers to pay gratuity.
Pardeep

From India, Bahadurgarh
Dear Sir,
I know the gratuity calculation in general cases, but what is the process in Tea gardens workers gratuity calculation because the workers paid a fiexd daily wage with a plucking task, if the worker pluck above the task then hs/she get incentive and the full wage ( Fixed daily wage), but if he/she pluck below task then the disincentive amount less from his/her daily fixed wage, then what is the process of the gratuity claculation. When calculate the gratuity amount Incentive / disincentive add/less from gratuity or not.
Kindly advise.

From India, Siliguri
This is a case of payment of fixed salary or piece rate wages whichever is higher. The incentive included in the wage component is really wages on piece rate and is not like any other incentive. Therefore, you can take the average of wages for the three months immediately preceding the day of his retirement or leaving the plantation. While taking the average, you should include the incentive portion since it is piece rate and can exclude overtime payment, if any. Normally, in piece rate wages, the matter of OT will not arise.
Madhu.T.K

From India, Kannur
Dear Madhuji,
I would like to take different take on average salary of Three months clause of of PAYMENT OF GRATUITY ACT.
As per Section 4 sub. 2, the average salary of three month clause only applicable to Piece-rate employee not daily rated employee.
The gratuity can be calculated on current daily rates of the employee.
Regards,
Avinash K.

From India, Mumbai
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