Dear Seniors, I have recently joined a company which is covered under Group Gratuity Scheme with LIC.
As a general practice annual premium is paid to LIC for renewal of the assurance.
As per Trust Deed the assurance shall be renewed on basis of one month gross salary of the members.
A specific amount, equilvalent to one month Basic Salary of each employee, is shown in ctc under the head Gratuity.
The management now wish to count only 15 day's salary under the head Gratuity.
The current formula by which employees have got gratuity after their resignation is as under:
Gratuity Amount = Last Drawn Basic x 30/26 x No. of years of Service
The management now want that henceforth, gratuity amount should be calculated as under:
Gratuity Amount = Last Drawn Basic x 15/26 x No. of years of Service
Please suggest that is it possible under Payment of Gratuity Act? 8th July 2015 From India