Payment of gratuity

Only the basic pay and dearness allowance is considered while accounting for the last drawn monthly salary. For computation of gratuity, your service period will be rounded off to a year.an employee needs to have at least five full years of service with the current employer to qualify for gratuity, except in the event that an employee passes away or is rendered disabled due to accident or illness, in which case gratuity must be paid.

As per Section 4 (2) of the Payment of Gratuity Act, 1972, the gratuity to be calculated  on the basis of last drawn rate of wages of the employee. Therefore in your case, the rate of  basic salary (also Dearness Allowance if any) drawn by you at UK prior to your retirement shall be considered for calculation of Gratuity.

Transfer/deputation are part of service conditions.

Submit FormI and let the company reply whatever it wants.

Were you provided with any social security benefits in UK?

You may show all docs on record to an able labor law Consultant/Service matters lawyer/Law firm.

Thank you Sir

National Insurance contribution was being deducted from my UK salary as per UK laws. There were no social security benefits being provided.

Please let me know if my Indian basic salary which I was drawing in 2009 before being transferred to UK would be considered for gratuity calculations or the UK salary I was drawing before retirement. The company has paid gratuity at my last drawn salary in India of 2009.

What should I do if I am entitled to gratuity calculation on the last drawn UK salary.

Regards

The Act is silent on location of employee.

Did you resign before leaving for UK?

All docs e.g. communications exchanged before leaving for UK, agreement signed for UK, who was processing salary etc need to be examined...........................

You may consult an able labor law consultant.

Such consultations are paid consultations.

I didnot resign from the company before leaving for the UK. It was an intra company transfer

The transfer letter indicates gratuity would be paid for the period of my assignment to the UK.

Please advice if the basic would be paid at he rate of last drawn salary in UK as the company has paid me gratuity on teh last drawn Indian salary of 2009 ( at the time of leaving for the UK).

My pay in UK was processed and paid by the UK arm of the company.

regards

You may consult an able labor law consultant.