Hi, I work in a known software company and got a promotion with a good hike effective 15th March 2021. Our salary is calculated from 15th to next 15th. I.e salary is computed from 15th March to 15th April and I get that salary on 30th April. I am planning to resign and may not serve a complete notice period ( 60 days ) and my new org will be compensating for my loss( notice period buy out)
Question: My gratuity will be paid on my new salary or old salary? I have not yet "drawn" the new increased salary and I may not draw that also considering as soon as I resign my salary will be withheld and will be given as part of the final settlement only.

From India, Bengaluru
Labour Law & Hr Consultant
Partner - Risk Management


The question of gratuity payment will be calculated on your new salary irrespective of the fact that your date of relieving as your new salary will be effective from 15th March.
But, In private companies, your employer may with draw your salary hike once you put down your papers. If you are lucky enough, you may get your final settlement in your revised salary.

From India, New Delhi
Thanks for your response.
They can not withdraw the Hiked salary as I have the new offer letter and both( company and I ) have accepted it already. My increased grade is being reflected already in the company HR system ( workday).

From India, Bengaluru

You are planning to abscond (leave without completing notice period) You really expect they will give you the salary hike? In fact, i will be surprised if you get your gratuity.
From India, Mumbai
I guess you didn't read the question properly... I will be compensating the notice period .. " to resign and may not serve a complete notice period ( 60 days ) and my new org will be compensating for my loss( notice period buy out)"
From India, Bengaluru

Legally speaking, effective date of promotion would be the promotee's joining in the new post which is admittedly 15-03-2021. Therefore, whether he drew the salary on the revised scale applicable to the higher post is irrelevant if he puts down his paper after his promotion. The question of buy-out of notice period arises only when the person is not able to serve a part of notice period or the entire notice period. In either case, his resignation is effective from his actual date of relieving which must be certainly later than his promotion date. Hence, what would be the salary payable for the higher post is the last drawn salary both for the purposes of buy-out and gratuity.
Withdrawal of salary hike due to promotion on account of subsequent resignation of the promotee will not be legally correct as the promotion stands already acted upon on the date of termination due to resignation.

From India, Salem

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server