Hi All,
Warm wishes and hope every one is doing well..
Well I have a confusion regarding the gratuity payout to some one who leaves a employer after 6 years.
Suppose Rs." GD" is amount deducted annually @4.81% per year. So with no increment the total gratuity deduction will be Rs. "6xGD" .
After 6 years he left the comp and the gratuity calculated as per act will be = Rs. ( Last month Salary Drawn/26 x 15 x 6 (years) ).
Now my question is " Is the total gratuity payout includes the total deduction done in 6 years i.e 6xGD or it will be added to the total payout calculated.
Kindly help me on this.
From India, Bhubaneswar
Warm wishes and hope every one is doing well..
Well I have a confusion regarding the gratuity payout to some one who leaves a employer after 6 years.
Suppose Rs." GD" is amount deducted annually @4.81% per year. So with no increment the total gratuity deduction will be Rs. "6xGD" .
After 6 years he left the comp and the gratuity calculated as per act will be = Rs. ( Last month Salary Drawn/26 x 15 x 6 (years) ).
Now my question is " Is the total gratuity payout includes the total deduction done in 6 years i.e 6xGD or it will be added to the total payout calculated.
Kindly help me on this.
From India, Bhubaneswar
Hi
No matter what your internal document shows with regards to the Gratuity, the amount payable as per the Act will not be disturbed under any circumstances unless of course the employer wants to pay any amount which is higher than stipulated.
Your second point last drawn salary per month [Basic+DA]/26 x 15 x number of years completed shall remain as the amount payable in the above case. Gratuity is not supposed to be deducted from the employee salary at all.
Thanks and Regards
From India, Hyderabad
116No matter what your internal document shows with regards to the Gratuity, the amount payable as per the Act will not be disturbed under any circumstances unless of course the employer wants to pay any amount which is higher than stipulated.
Your second point last drawn salary per month [Basic+DA]/26 x 15 x number of years completed shall remain as the amount payable in the above case. Gratuity is not supposed to be deducted from the employee salary at all.
Thanks and Regards
From India, Hyderabad
The Law as to payment of gratuity does not provide for the authorise the employer to make any deduction from the pay of the employee against the payment of gratuity as and when due.
From India, Kochi
From India, Kochi
For the sake of CTC, some firms show Gratuity Contribution as part of it and it is between company and employee. Gratuity Act and Rule has nothing to do with that. However as far as payment upon retirement or exit, the firm shall follow rules and can not pay less than what stipulate as per law.
You may refer the act and rules at https://www.stacowiki.in/en/acts/st-...tuity-act1972/
From India, Bangalore
You may refer the act and rules at https://www.stacowiki.in/en/acts/st-...tuity-act1972/
From India, Bangalore
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.
REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
PMRPY-DEDUCTION -SOLUTION.xls