Madhu.T.K
Industrial Relations And Labour Laws
Kalpanaksharma
Deputy Manager - Hr
Sanwat
Labour Laws.welfare
Anbu Alagan
Reporter
+2 Others

I joined a company on 1st Aug 2002 and I resigned on 30th April 2011 - so total worked is 8yrs 8 months,so 9 years will considered for calculation

,my basic was 22500/- effective 1st april 2011,

Before increment basic was 15000/-,

According to Gratuity act i supposed to get gratuity on last drawn salary

which is 22500/-

gratuity calculation 22500X15x9/26=116827

Our company is taken LIC group gratuity scheme

Now our HR guy is telling that, they renew gratuity scheme in every year in DEC, so basic will be considered on that months

so his calculation is 15000X15X9/26=77885

so according to his calculation i'm losing 39000/-

Dear friends could u pls help me in this regard of Gratuity calculation and renewal policy of group gratuity scheme,

Is there any document which i can go back and fight for right calculation?
10th June 2011 From India, Madras
Gratuity is to be paid on the basis of the last drawn salary. For the employee, renewal date of Gratuity Policy is not at all a matter. That is the head ache of the employer. Therefore, you are entitled to get gratuity of Rs 116,827.
Regards,
Madhu.T.K
10th June 2011 From India, Kannur
Please ask the HR to refer section 4(2) of the Payment of Gratuity Act. Also refer section 4A which deals with compulsory insurance wherein there is no mention that the amount of gratuity shall be restricted to the amount as per policy maturity or some thing related to premium paid.
Regards,
Madhu.T.K
11th June 2011 From India, Kannur
Madhu is right, there is no relation to the renewal date with the calculation of Gratuity payable. Last drawn salary at the time of Exit from organisation has to be considered.
13th June 2011 From India, Mumbai
Dear Sir
Please help me in the calculation of Gratuity of our one worker.
His D.O.J. is 01.07.2003.
His Working days is:
1. 01.07.2003 to 30.06.2004 237 (No EL availed )
2. 01.07.2004 to 30.06.2005 189 (During Nov & Dec he is on ESI Leave after a accidental injury)
3. 01.07.2005 to 30.06.2006 253
4. 01.07.2006 to 30.06.2007 248
5. 01.07.2007 to 30.06.2008 250
6. 01.07.2008 to 30.06.2009 268
7. 01.07.2009 to 30.06.2010 251
8. 01.07.2010 to 30.06.2011 272
His Basic : 6200/-
How many years gratuity he claim now.
Thanks
Parveen
27th September 2011 From India, Chandigarh
Dear Friends I too agree with Madhu. Gratutity is calculated on last salary drawn. Regards Kalpana
28th September 2011 From India, Hyderabad
Praveen,
According to me, your employee has completed exact 08yrs of service. Also all leaves are treated as part of regular employement.
So the calculation goes as below:
6500X15x8/26 = Rs.30000
Regards
Kalpana
28th September 2011 From India, Hyderabad
Sir I was worked in Tamil newspaper daily thanthi from 2002 June to 2013 January. My gratuity scheme is Lic group gratuity scheme. I am resign my job in 2013 January. I was received Lic gratuity amount rupees 98 327 as per manisana wage board. Then honourable Supreme Court uphold majithia wage board award with monetry benefit with effect from 11.11.2011. My last drawn salary was revised as per majithia wage board. But the company refused to give gratuity revision. The company told Lic gratuity is one time payment. Revision is not applicable for Lic gratuity. But as per gratuity act calculation we taken last drawn salary time to time. Please give the rules about Lic gratuity revision when salary is revised after resignation?
24th June 2018 From India, Chennai
After payment of gratuity,if the salary is revised with retrospective effect, the employee who left in between will be entitled to get the difference of gratuity. It is true that since the premia were paid to LIC based on pre revised salary, the LIC may not be able to pay it but the employer cannot escape from his liability of paying it.
25th June 2018 From India, Kannur
Gratuity would be payable on the last basic+DA drawn.
so you are entitled to get calculated on Rs. 22500
Gratuity Calculation Under Payment of Gratuity Act 1972
Thanks
Sandeep Rai
Sab Kuch Online
29th August 2018 From India, Delhi
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