Umakanthan53
Labour Law & Hr Consultant
Dhivya B
Employee

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Hi Sir, My query is, since my basic i revised for FY21 and the last working day is on 27th April, i will not be getting the salary in the month of April, but for gratuity calculation, will the increased basic of April be considered or the basic withdrawn on March?
ex - Basic for March -50000
Basic for April - 75000
last working day is 27th April
Please help with the answer to this question as i couldn't find an answer to this.

From India, Bengaluru
Dear Satya,
The revision of your basic for the FY 2020-21 is effective from 01-04-2020 and your last working day is 27-04-2020. Therefore, your salary for the month of April,2020 has to be calculated and payable only at the revised rate effective from April 1, 2020 though you would have worked partly in the month of separation. Section 4(2) of the Payment of Gratuity Act,1972 repeatedly uses the phrase " rate of wages last drawn by the employee " for the purpose of calculation of gratuity through out the entire body of the sub-section as well as its explanation. The phrase automatically implies that it is the rate of wages actually payable on the date of termination of employment in the case of a monthly rated employee and not any thing more or less.
Therefore, your revised basic of Rs.75000-00 should be the rate of wages for calculation of gratuity payable on the termination of your employment on 27-04-2020 though the revision and the termination take place in the same month.

From India, Salem
Hi Satya, Basic at the time of reliving will consider for the Gratuity calcualtion. In this case Rs. 75000 will be consider for Gratuity calcualtion.
From India, Coimbatore
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