kaykayhr Started The Discussion:
Dear all,
Our company doesn't have a salary structure yet. The salary is paid only on the head gross salary . In this case whether the gratuity is paid on the whole salary or shall we split some percentage of gross salary as Basic+ da for gratuity calculation and is it legal

Help me friends plzzzzz


Dear Anu, Apart from ESI all calculations should made only in Basic+DA (PF,Gratuity,Superannuation)so gratuity should be calculated only in basic+DA. Regards Sendil G
Dear Anu,

As long as you do not have the salary structure broken up into Basic + DA (this must be greater than the minimum wages as per respective act) and other allowances it is implied that for all practical purposes the wage is the consolidated wage you are giving month on month. So Gratuity will be on the Gross salary only.

gratuity act

if your service is 5 years or above then you are libel gratuity composition

if your establishment is non seasonal then 1 year service salary + 15 days salary is your gratuity

ex. salary 10000 (10000/26=385 per day wages)
per one year your gratuty is 385*15 = 5775 rs.
Will the employee be eligible for Gratuity even if he has not completed 5 years in the event of death? Will it be the same calculation


Found This Useful? +Vote Up This Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

About Us - Advertise - Contact Us - RSS   On Google+  
Copyright 2016 Cite.Communities (CiteHR.Com) User contributions are owned by the contributor.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network