Dear all, our company doesn't have a salary structure yet. The salary is paid based only on the gross salary. In this case, should the gratuity be calculated on the entire salary, or should we allocate a percentage of the gross salary as Basic+DA for the gratuity calculation? Is this legally acceptable? Help me, friends, please.
Regards,
ANU
From India, Kochi
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Regards,
ANU
From India, Kochi
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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
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From India, Madras
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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 the 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.
Regards,
M.V. KANNAN
From India, Madras
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270Regards,
M.V. KANNAN
From India, Madras
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Gratuity Act
If your service is 5 years or above, then you are eligible for gratuity compensation. If your establishment is non-seasonal, then 1 year of service salary plus 15 days of salary is your gratuity. For example, if your salary is 10,000 (10,000/26 = 385 per day wages), your gratuity for one year would be 385 * 15 = 5,775 Rs.
From India, Rajkot
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If your service is 5 years or above, then you are eligible for gratuity compensation. If your establishment is non-seasonal, then 1 year of service salary plus 15 days of salary is your gratuity. For example, if your salary is 10,000 (10,000/26 = 385 per day wages), your gratuity for one year would be 385 * 15 = 5,775 Rs.
From India, Rajkot
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SALARY SHEET CALCULATION.xls
Salary calculation.doc