I have doubt in 15/26 gratuity calculation where 26 is the no of working days in a month leaving 4 Sundays... but if a person is working for a organization which works only for 5 days week then should the calculation be 15/23 or will it still be 15/26.
From India, Mumbai
1From India, Mumbai
Dear Snejay11,
In the explanation to rule 6, it is stated that in case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying quotient by fifteen.
So, whether you have 5 days working or 6 days, the dividing factor is 26 only.
If you want to have dividing factor 23, no one can object you. You can give any thing more than the law.
From India, Mumbai
In the explanation to rule 6, it is stated that in case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying quotient by fifteen.
So, whether you have 5 days working or 6 days, the dividing factor is 26 only.
If you want to have dividing factor 23, no one can object you. You can give any thing more than the law.
From India, Mumbai
Why dividing by 23 only, if your Management permits you, you can give 30 days gratuity payment for each completed year of service instead of 15 days subject to maximum amount of Rs.20 lakhs (over and above is taxable). No Law will stop you doing such "Welfare".
You may also suggest / recommend GOI to amend separate rules for industries working for 5 days a week.
I appreciate Mr. Korgaonkar's comment on this.
Suresh
From India, Thane
You may also suggest / recommend GOI to amend separate rules for industries working for 5 days a week.
I appreciate Mr. Korgaonkar's comment on this.
Suresh
From India, Thane
It is to be noted that quite sometime back, the Hon'ble Supreme Court held that for Gratuity calculation purposes, the denominator is always 26. Even LIC group gratuity also calculates by taking the denominator as 26 whether the employees work for 23 or 24 days.
From India, Bengaluru
From India, Bengaluru
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