Gratuity act query

BHAWNA PANJWANI (Querist) 15 September 2015 This query is : Resolved
Hello All,

A unit including other allowances in the wages for the gratuity purpose but as per gratuity act wages includes only basic+DA.

Now that unit want to go with law and doesn't want to include other allowances.
Whether is it lawful to discontinue other allowances as from many years it was including.

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Kumar Doab (Expert) 15 September 2015
As per Title the query pertains to Gratuity only.

You are already aware that only Basic+DA is considered for calculation of Gratuity.

Rajendra K Goyal (Expert) 16 September 2015
Agree with the expert Kumar Doab.

BHAWNA PANJWANI (Querist) 17 September 2015
I know but some of my client did the mistake and now he want to overcome with following law so i took advices

Kumar Doab (Expert) 17 September 2015
Once it has been done and various statutory obligation of employer have been firmed up e.g. PF..................it may not be possible to retract.

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