gratuity
raghavendra
(Querist) 19 August 2010
This query is : Resolved
sir.
i have terminated from one companyin bangalore, i have served for 6 years , i have not been receiving salary slips. my salary was 11000/- pm , now while calculating the salary management reckon ony 4500/- for gratuiy by saying this is the basic salary , my question is earlier management not segregate this basic salary and my qun is they should reckoned 11000/- for gatuity, how you advise for this, i am r right to claim this amount
P.ESAKKIMUTHU
(Expert) 20 August 2010
As per Sec 2(8)(s) of Payment of Gratutiy Act,1972 wages is defined as follows
"wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which arc paid or arc payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Hence full amount must be taken into account and not basic pay alone
V.T.Venkataram
(Expert) 21 August 2010
The Gratuity is calculated on the following formula:-
As per the provisions of the Gratuity Act,
"For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned" and "In the 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 the quotient by fifteen".
Since there was no bifurcation of salary, gratuity has to be calculated on the basis of a monthly rate of wages of Rupees 11000/- pm
