which components includes while calculating gratuity ? what to take care of while Calculating Gratuity ?
From India, Ahmedabad
From India, Ahmedabad
Under normal circumstances basic salary and dearness allowance only would qualify for gratuity. But if the same has been fixed at a very low base, and there is an intention to reduce gratuity and other terminal benefits by the employer, the same can be challenged. In the present system of pay structuring the gratuity qualifying salary is always disputable. For better understanding please follow the link.
http://madhu-t-k.blogspot.com/2024/04/gratuity-qualifying-salary-some.html
From India, Kannur
4249http://madhu-t-k.blogspot.com/2024/04/gratuity-qualifying-salary-some.html
From India, Kannur
Gratuity should be calculated on the basis of Basic & DA only. If the Basic & DA is less than the minimum wages of the employee, it should be on the basis of minimum wages.
After the implementation of labor codes this problem will be over for the new way to determine the Basic & DA.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
After the implementation of labor codes this problem will be over for the new way to determine the Basic & DA.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
True, but what constitutes Basic wages is a matter of dispute. It is not really the basic wages that the employers decide. For computation of gratuity, there is no such direction in the Act that it should be computed only on basic wages and dearness allowance. If the purpose was to make it calculate on basic wages and DA alone the Act would have defined the term basic wages. But the Act has defined wages and that includes all emoluments and not simply basic wages. Yes, there are some exclusions like commission, overtime etc, and these are payments which will become due only on certain conditions the amount of which cannot be prefixed under a contract of employment.
From India, Kannur
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity calculation.doc
Gratuity Calculation tool.xls