Gratuity clarification
vijayan K pillai
(Querist) 30 October 2012
This query is : Resolved
Dear Sir,
I am working in a Private Limited Company at Ajmer since last 22 years. Now I have been transferred from Ajmer to their Kolkata Office from September 2012 and they withdraw the DA that i was getting in Ajmer office. But they do not mention about the withdraw of DA in the transfer letter and as per letter all the remain terms and conditions are remain unchanged in the appointment letter dated 05.10.1990 (which stands for DA.
Please inform if it will affect my final gratuity and pension calculation. If it effected then a huge loses i have to face. Please send your valuable advise/information.
Regards
Vijayan K Pillai
Sanjay K.Dhar
(Expert) 30 October 2012
Since you have continuous service of more than 05 years with your employer, therefore you have every right to receive gratuity at the end of your service as per Payment of Gratuity Act, but in so for as issue of calculation of gratuity is concerned, same is calculated as per basic wages including dearness allowance(D.A), thus non-payment of D.A would certainly affect your gratuity amount.
vijayan K pillai
(Querist) 31 October 2012
Dear Sir,
If it is possible to withdraw DA without any information.
Also inform that in that case any provision to calculate the Gratuity amount in consideration of previous services which was in DA added service.
Regards
Vijayan
Guest
(Expert) 31 October 2012
Salary for the purpose of calculating retirement dues like Gratuity ,P.F. etc. may comprise only Basic or Basic+D.A.It varies from organisations to organisations and entirely depends upon the service rules of the said organisations.Whatever may be the basis, it is followed uniformlly throughout the organisations and it has no relevance with the place of posting of the concerned employees.So, in the instant case , your retirement dues are not going to be affected due to change in your place of posting.However , it is really unususal and unjustified to stop payment of D.A.which is payable to each employee as per the terms of engagement irrespective of his place of posting.Please submit a representation for the same to your organisation and in case you do not get any response serve a legal notice against them.
vijayan K pillai
(Querist) 31 October 2012
Dear Sir,
A lot of thanks for above replies.
But my one doubt is still remain un attended.
Please let me know the calculation of DA upto August 2012 with the service of 22 years, if they not ready to give DA thereafter should i face loses in that case.
Also note that there is no increase in Basic and no promotion and still both are same which I have in Ajmer
Regards
Vijayan
vijayan K pillai
(Querist) 01 November 2012
Dear Sir,
A lot of thanks for above replies.
But my one doubt is still remain un attended.
Please let me know the calculation of DA upto August 2012 with the service of 22 years, if they not ready to give DA thereafter should i face loses in that case.
Also note that there is no increase in Basic and no promotion and still both are same which I have in Ajmer
Regards
Vijayan
V R SHROFF
(Expert) 01 November 2012
Only last drawn salary is calculated for gratuity purose
Guest
(Expert) 01 November 2012
Wages as defined in the Payment of Gratuity Act is considered for the purpose of paying gratuity.It includes all emoluments earned by an employee while in duty or on leave in accordance with the terms and conditions of his employment and which are paid or payable to him in cash and includes D.A. but does not include bonus,commission,HRA,OT and any other allowance vide Section 2 of the Payment of Gratuity act,1972.
The employer cannot modify the service conditions of the employees to their detriments. Once they have given you D.A.,they have no authority to subsequently dis-continue it.It is a serious violations of the statute.
If there is any contradiction between the Service Rules of your Company and the Statute, the provisions contained in the statute shall prevail.
