Greetings for the day!
One of mine freind is working in Limited company. As per company's current HR policy gratuity is payable to all employees on Gross Salary Bases. However, company has decided to change the policy WITH RETROSPECTIVE EFFECT to pay gratuity on Basic+DA.
My question is whether company can do so?
From India, Mumbai



From India, Kannur
Madhu Sir has replied your query in detail as per the provisions of the Payment of Gratuity Act, 1972, Section 2 (s) . However, in India most of the companies are paying gratuity only on Basic plus Dearness Allowance and where there is no DA than only on Basic pay. No inspecting authority has any objection on it so far.
Regards,
Suresh
From India, Thane
From India, Kannur
I have clearly mentioned in my first sentence that you have replied Jignesh query in detail and its perfectly right thus applied for his friend's organisation.
My second sentence is generic which is followed by most of the organisations for computing gratuity payment on Basic + DA.
Regret for the confusion, if any.
Regards,
Suresh
From India, Thane
From India, Kannur
Actually my brother was resign in his company and company said that you have to serve 1 month notice period in company but he dont want to go office due to some medical issue so its possible to use El in notice period because he have 70El .so its mandatory to serve a notice period .
From India, Delhi