Labour Law & Hr Consultant
Hr Manager

Dear Members,
I came to know that gratuity is applicable to educational institutions. Would like to know from when it is covered and where I can get a copy of the notification to this effect.
Secondly, my PF consultant says gratuity has to be calculated on gross salary (except conveyance) but my understanding is it is calculated on basic + DA.
I request members to respond and give me correct inputs.

From India, Bangalore
Dear Bhavan,
As per notification no. S.O.1080 dated 03-04-1997 of the Central Govt., u/s 1(3)(c) of the Payment of Gratuity Act,1972, educational institutions employing 10 or more employees have been specified as a class of establishments to which the Act shall apply w.e.f the same date.
You can find it in the latest edition of the Act books.
Since the Act is made applicable to such educational institutions w.e.f 03-04-1997, those employees on the rolls on that date and retire/resign thereafter are entitled to gratuity under the Act irrespective of their date of appointment subject to the fulfillment of the eligibility criteria.
Your view-point that the sum total of the last-drawn monthly basic pay and D.A only have to be taken into account for the purpose of calculation of gratuity is correct.

From India, Salem
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