1530
Dear KK!HR,
I will appreciate if you give the section verbatim to the effect the gratuity is to be calculated on the aggregate of basic pay and DA.
...............................................
...............
......................
............................
From India, Mumbai
I will appreciate if you give the section verbatim to the effect the gratuity is to be calculated on the aggregate of basic pay and DA.
...............................................
...............
......................
............................
From India, Mumbai
In case of death of employee with less than 1 year service,NOK will get 2 times Basic pay as gratuity.
From India, Pune
From India, Pune
Sir, Section 4(2) of the PGA states that employer shall pay gratuity at the rate of fifteen days' wages for every completed year of service. And Section 2 (s) defines wages to be ".... and includes dearness allowance but does not include ......"
From India, Mumbai
From India, Mumbai
Dear KK!HR,
I read the section 4(2) and Section 2(s) again and again this morning and found no where it is mentioned that the gratuity is to be calculated on the aggregate of basic pay and DA.
I am wondering now a days reading various posts not only on this site but elsewhere too as to really I am making mistake(s) in understanding the basic of Laws.
What is written in section 4(2) is reproduced hereunder:
"...the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned."
I feel the meaning of rate of wages last drawn is different than "aggregate" what you said.
Please correct me if I am wrong. In fact it is not appropriate on my part to cross a person like you who is Super Moderator. I am sorry for this.
From India, Mumbai
I read the section 4(2) and Section 2(s) again and again this morning and found no where it is mentioned that the gratuity is to be calculated on the aggregate of basic pay and DA.
I am wondering now a days reading various posts not only on this site but elsewhere too as to really I am making mistake(s) in understanding the basic of Laws.
What is written in section 4(2) is reproduced hereunder:
"...the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned."
I feel the meaning of rate of wages last drawn is different than "aggregate" what you said.
Please correct me if I am wrong. In fact it is not appropriate on my part to cross a person like you who is Super Moderator. I am sorry for this.
From India, Mumbai
Dear Shri Keshav,
Sec 2 of Payment of gratuity act defines wages
wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Gratuity calculators available on the internet work out Gratuity like in this link
Gratuity Formula for Calculation of Gratuity Amount in India
But many of the other calculators take Basic pay +DA as the base for working out.
From India, Pune
Sec 2 of Payment of gratuity act defines wages
wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Gratuity calculators available on the internet work out Gratuity like in this link
Gratuity Formula for Calculation of Gratuity Amount in India
But many of the other calculators take Basic pay +DA as the base for working out.
From India, Pune
Dear Nathrao ji,
The calculation given in the link is absolutely correct. (But I don't rely on any link or google search).
In the link it is clearly mentioned that Last drawn wages which I am also saying. The last drawn is not arrived by "aggregate". And the word "aggregate" is very vague which doesn't define the period for aggregation.
.................................................. .................................................. .................................................. .................................................. .................................................. .................................................. ..........................
From India, Mumbai
The calculation given in the link is absolutely correct. (But I don't rely on any link or google search).
In the link it is clearly mentioned that Last drawn wages which I am also saying. The last drawn is not arrived by "aggregate". And the word "aggregate" is very vague which doesn't define the period for aggregation.
.................................................. .................................................. .................................................. .................................................. .................................................. .................................................. ..........................
From India, Mumbai
Dear Mr Keshav, Thanks for the clarification. I also do not rely on Google search, but on search and reading of original enactments and court rulings.
From India, Pune
From India, Pune
Dear All,
As per Section 4 (1) , Gratuity is a gift to an employee by an employer for rendering continuous service of not less than five years and he will get this gratuity after the completion of services viz.. resignation, retirement superannuation, death and disablement.
but in case of death and disablement this provision of continuous service is not applicable. employee is entitled for Gratuity.
From India, Jaipur
As per Section 4 (1) , Gratuity is a gift to an employee by an employer for rendering continuous service of not less than five years and he will get this gratuity after the completion of services viz.. resignation, retirement superannuation, death and disablement.
but in case of death and disablement this provision of continuous service is not applicable. employee is entitled for Gratuity.
From India, Jaipur
Dear All,
The Calculation of Gratuity under the Act that is -Basic +DA/26 days x no of service days/years.
All Allowances except house rent allowance the part of basic wage if the allowance earned by all paid by all employees while on duty, leave,holiday and on rest day.
Prithvi Singh Yadav
CEO
Newerahr Management consultancy GGN(HR)
From India, New Delhi
The Calculation of Gratuity under the Act that is -Basic +DA/26 days x no of service days/years.
All Allowances except house rent allowance the part of basic wage if the allowance earned by all paid by all employees while on duty, leave,holiday and on rest day.
Prithvi Singh Yadav
CEO
Newerahr Management consultancy GGN(HR)
From India, New Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc