Team, Kindly advise how can we compute gratuity for contract employees on Daily wages. We will be paying wages to these employees based on their attendance.
For all holidays excluding Sunday wages will be given to them.
Thanks & Regards
Kiran Raj
From India, Mumbai
4For all holidays excluding Sunday wages will be given to them.
Thanks & Regards
Kiran Raj
From India, Mumbai
Pay gratuity as per following formula :- Daily wages x 15 x yrs of continuous service as per PG Act. S K Bandyopadhyay ( WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in www.usdhrs.in
From India, New Delhi
From India, New Delhi
In respect of daily rated workers, take their average wages paid for the last three months and then arrive at daily rate of wages by dividing it by 26 and then pay it depending upon the number of years' service.
From India, Kannur
From India, Kannur
In the case of daily rated workers, the gratuity calculation to be done on present day rate or the rate of his last wages. For example: The present day rate of person is ₹1000/- and worked for five years. The gratuity amount comes to :-₹1000x15Dx5Y=₹75000/-.
From India, Mumbai
From India, Mumbai
It appears from replies to this thread that the Gratuity to Daily wages workers will be calculated by two different methods - 3 months Average wages basis or last drawn daily wages basis. Mr. Madhu TK is in opinion of 3 month average wages basis . My request to MR. Madhu TK to opine finally which one is correct. If it is 3 months average wages basis, requesting to refer any court cases or particular section under PG Act. In absence of any reply it will be presumed that opinion of Mr. P R Mohanty is right otherwise many members of CiteHR will be confused specially when it is opined by very senior and learned member like MR. Madhu TK.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
If you have a notional wage for daily rated workers, then there is no issue in taking the last drawn salary. Here the issue is that daily rated workers do not have a common last 'drawn' wage but their monthly wage will vary according to their engagement. The Act is specific about calculation of gratuity qualifying wages of piece rated workers and that is average of their 'earnings' for the 3 months preceding the date of termination of employment. In the similar way, a daily rated employee may not be engaged through the month and naturally, his monthly earning in the last month may not be notional wages. In such instances, I feel it is good if you take the average of wages earned in the three months. This is the practice when we find the compensation payable under the ID Act also.
From India, Kannur
From India, Kannur
There is just opposite i.e 180 degree difference between Daily rate of wages and Piece rate of wages. You have mixed up every thing to explain one simple thing which has no legal validity. No where in PG Act it has been mentioned that Gratuity for Daily rated person should be calculated on the basis of 3 months average wages which you have concluded in your first post based on whimsical interpretation.
For daily rate and monthly rate it is always based on notional amount not on average or actual earnings in a particular month. It is clear in PG Act.
Even in your last post you have confused all without straight forward answer to the question by your own interpretation which has no legal validity. In past you have put your own interpretation to pay gratuity on monthly gross instead on Basic & DA as per your own whimsical interpretation without any legal sanction.
As good number of new members are following cite advice as bible, requesting you to put straight forward reply instead of confusing new members.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
For daily rate and monthly rate it is always based on notional amount not on average or actual earnings in a particular month. It is clear in PG Act.
Even in your last post you have confused all without straight forward answer to the question by your own interpretation which has no legal validity. In past you have put your own interpretation to pay gratuity on monthly gross instead on Basic & DA as per your own whimsical interpretation without any legal sanction.
As good number of new members are following cite advice as bible, requesting you to put straight forward reply instead of confusing new members.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
I understood. You are right. I have confused the cite members. Sorry for that.
The concept of notional wages was put by me only. Then there came some other interpretations. On the basis of that interpretations we will take the discussion forward. That is the basic objective of this forum. It is a brain storming platform wherein people discuss various things and arrive at a practical solution. I have also tried to evolve a practical solution for it.
It is true that the manner in which the gratuity of daily rated workers who get engaged very casually are not explained in the Act. When a question arises as to what constitute daily wage, in the absence of a guideline, we can refer to other Acts. I have done that practice only. If you disagree, don't follow that. But I have not confused, I am sure.
No more comments from my side.
From India, Kannur
The concept of notional wages was put by me only. Then there came some other interpretations. On the basis of that interpretations we will take the discussion forward. That is the basic objective of this forum. It is a brain storming platform wherein people discuss various things and arrive at a practical solution. I have also tried to evolve a practical solution for it.
It is true that the manner in which the gratuity of daily rated workers who get engaged very casually are not explained in the Act. When a question arises as to what constitute daily wage, in the absence of a guideline, we can refer to other Acts. I have done that practice only. If you disagree, don't follow that. But I have not confused, I am sure.
No more comments from my side.
From India, Kannur
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc