can someone help me formulate the gratuity according to the law? FYI: i was told i am at risk(my role was made redundant and my notice period had started, if i get hired internally to another team with in the notice period than my association with the company would continue as usual else I will be terminated by end of the notice period).
I tried my best to land an internal job for more than a month and put down my paper when the HR misguided me that I was not eligible for gratuity even if served the complete notice period. With the help of lawyersclubindia members i have come to realize that I am eligible for gratuity but facing obstacles to calculate my gratuity.
In my case would i be considered as terminated? does the formula differe for resignation and termination?
found thisby googleling
- Gratuity = Monthly Salary (Basic +DA) x 15 days x No. of yrs. of service/26
- *Completed years of service: More than 6 months service will be counted as full year of service i.e. 1 year 7 month will counted 2 years
- Max. Gratuity payable under the Act is Rs. 3,50,000*/- * Please confirm it, This is exempted from tax if drawn after the retirement or leaving the job.
is it correct? also there is no DA in my salarty slip, is there a way to calculate it? from the parameters in my payslip? or i consider it zero?
sample pay slip
Earnings | Amount | Deductions | Amount |
Basic House Rent Allowance: Taxable Allowance Supplementary Allowance |
A B C D |
Provident Fund Voluntary Provident Fund Income Tax Transport Deduction Professional Tax |
F G H I J |
Gross Earnings(A+B+C+D) | E | Gross Deductions(F+G+H+I+J) | K |
EARNINGS | ANNUAL |
Lta Medical |
L M |