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rajesh   27 April 2016

Salary calculation for gratuity

Hi All,

I have a query regarding calculation of gratuity.  In my appointment, there is no bifurcation of salary, eg, basic, hra, medical, etc.  I've completed my 6 yrs in the company and m elligible for gratuity.  But now my query is what should be my gratuity (no basic defined in appointment letter).  My PF deduction is 1800 Rs. flat as everybody in the organization gets deducted the same amount whose salary is above 15000.   Please help because now my office is calculating my gratuity on the basis of basic salary while there is no basic component is defined.

 

Thank you in advance.

 



Learning

 19 Replies

Kumar Doab (FIN)     27 April 2016

Has the employer issued any salary slip?

In this case the whole salary may be taken as Basic.

You seem to have benefiting in this case. 

rajesh   27 April 2016

No sir not issued any salary slip......

rajesh   27 April 2016

If you are sure....how can I make company aware....is there any reference to show them as a legal thing that in this scenario salary should be calculated as a basic component

Kumar Doab (FIN)     28 April 2016

How was the salary paid?

Did you sign any voucher?

Was any break up mentioned in voucher?

In case of no evidence the appointment letter can be a good evidence if you have not signed and accepted in writing any change in salary/break up.

rajesh   28 April 2016

Thank you for your reply.....

Salary paid by account transfer.  I did not sign any vocher as of now in which any break up mentioned.  

Kumar Doab (FIN)     29 April 2016

Has the salry been transferred from company's a/c?

Is your a/c in bank is salary a/c opened/witnessed/introduced by company?

Stick to mentioned salary in appointment letter and amount transferred in the bank!

 

Gratuity= {(Basic+DA)/26*15*No. of years}

(Basic+DA) is as per last drawn wages. IN our case there is no DA and claim whole as basic.

If service period is 6Y6M1D then take it as 7Y. 

rajesh   30 April 2016

Thank you sir for your help..... Answer of both the query is yes....

Kumar Doab (FIN)     30 April 2016

Better maintain that NO salary slip was ever issued and supplied to you!

Ritesh Maity (Labour Law Advocate)     04 May 2016

Gratuity is calculated only on basic and DA. Since you are getting a consolidated salary of Rs.15000/-, grauity would be calculated on the whole amount. 

It is the responsibility of the employer to bifarcate the salary into different components and if it is not done, then for the purpose of calcuation the entire salary would be considered. 

In this case you are at an advantage. 

Just claim gratuity on the entire amount of Rs.15,000/- through FORM I before the company.

Kumar Doab (FIN)     04 May 2016

In FormI mention your last drawn salary (salary as in appointment letter-Employee's PF conntribution).

rajesh   19 May 2016

Hi Sir,

I am really thankful for your help.  I did communicate with my company.   I am pasting below the answer of my company, just want to know that what does it mean.....I am just pasting last mail I received from the company.  Please guide me further what should I do.

Hi Rajesh,

Since you are taking HRA exemption whilen calculating income tax liability in earlier years,it means your salary package was including House rent allowance.

The salary bifurcation was internal as a matter of Company policy.

Thanks & regards
Director

Kumar Doab (FIN)     19 May 2016

You may take a stand that you are on rent and the amount that you pay to landlord is submitted for exemption.

The employer can not take your actual spending as implied break up.

If you are unable to handle on your own lean on an able counsel specializing in labor-service matters.

 

 

Ritesh Maity (Labour Law Advocate)     19 May 2016

You can stick to your stand on entire Rs.15000/- for the purpose of calculation of gratuity. If you claim on the entire amount (since nothing is mentioned and no pay slip was issued) then the onus will be on company to prove the segregation of elements of wages to establish their contentions.

Kumar Doab (FIN)     20 May 2016

Now submit everything under proper acknowledment.

 


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