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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
From India, Kochi
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
From India, Madras
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.
From India, Madras
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.
From India, Rajkot
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
From India, Madras

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