Dear friend,
I wish to drive home a point here. It's better for any employer to fix basic, DA, HRA and other allowances before hand itself at the time of offer/apptt./joining in an establishment. Even when there is CTC pattern followed in an organisation, in order to avoid litigation and unrest, every details shall be provided. Why I'm pressing for this is due to a possibility that some estt. keep them highly guarded or not spelling out the bifurcation to the employees and keep the take home salary only is known. This might throw open a litigation, If I were an employee I could as well raise a dispute that my take home or gross salary consisted of Basic & DA only and I should be paid gratuity on this which can be justified as I was not given a breakup before or during my employment but only when I quit this is being revealed and therefore it's arbitrary.
Further, there should be pre-determined formula for DA, HRA atleast while there need not be any formula for Basic and/or other allowances.
I would suggest, it's reasonable that this formula should be more or less in line with what is being followed by other establishments in the very same sector/ trade/ business/services.
Few guidlines were discussed by members in earlier posts on this issue which can be consulted to have proper guidelines.
From India, Bangalore
1077I wish to drive home a point here. It's better for any employer to fix basic, DA, HRA and other allowances before hand itself at the time of offer/apptt./joining in an establishment. Even when there is CTC pattern followed in an organisation, in order to avoid litigation and unrest, every details shall be provided. Why I'm pressing for this is due to a possibility that some estt. keep them highly guarded or not spelling out the bifurcation to the employees and keep the take home salary only is known. This might throw open a litigation, If I were an employee I could as well raise a dispute that my take home or gross salary consisted of Basic & DA only and I should be paid gratuity on this which can be justified as I was not given a breakup before or during my employment but only when I quit this is being revealed and therefore it's arbitrary.
Further, there should be pre-determined formula for DA, HRA atleast while there need not be any formula for Basic and/or other allowances.
I would suggest, it's reasonable that this formula should be more or less in line with what is being followed by other establishments in the very same sector/ trade/ business/services.
Few guidlines were discussed by members in earlier posts on this issue which can be consulted to have proper guidelines.
From India, Bangalore
Thanks Mr. Kumar,
Till now the company has not set any Basic or DA, We have been paying what was negotiated during the interview after taking PF and ESI (ESI if eligible).
But now we have employees who have been with the company for 5+ years and still continuing. So, in order for us to calculate gratuity, we are implementing the salary breakup. Only here we got stuck with the gratuity calculation like should we take gratuity in part of the salary or calculate it separately.
thanks and regards
shankar.
From India, Chennai
Till now the company has not set any Basic or DA, We have been paying what was negotiated during the interview after taking PF and ESI (ESI if eligible).
But now we have employees who have been with the company for 5+ years and still continuing. So, in order for us to calculate gratuity, we are implementing the salary breakup. Only here we got stuck with the gratuity calculation like should we take gratuity in part of the salary or calculate it separately.
thanks and regards
shankar.
From India, Chennai
Basic and DA should not be less than the Minimum Wages prescribed for the scheduled employment for calculation of gratuity
From India, Pune
From India, Pune
Better late than never. And nothing is lost since even now you have no obligation to reveal the bifurcation unless need arises when any one has to be settled on separation. If you would indicate the wage levels and what are all should form part we could suggest reasonable bifurcation suitable for your entity to be in line with your contemporaries.
From India, Bangalore
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc