which components includes while calculating gratuity ? what to take care of while Calculating Gratuity ?
From India, Ahmedabad
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From India, Ahmedabad
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Under normal circumstances, basic salary and dearness allowance only would qualify for gratuity. However, 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
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4761http://madhu-t-k.blogspot.com/2024/04/gratuity-qualifying-salary-some.html
From India, Kannur
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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
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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
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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. However, 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 that will become due only under certain conditions, the amount of which cannot be prefixed under a contract of employment.
From India, Kannur
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From India, Kannur
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Gratuity calculation.doc
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