Auditor Query : Kindly clarify the Gratuity salaries is why decreased to employees Emp : X Salary - Gratuity : 17200 Previous Salary : 17500 Change in Salary : -3% Comments : ?
From India, Hyderabad

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As per Section 4 (2) of the Payment of Gratuity Act 1972, 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. So where the last drawn wages is @ Rs. 17200/- p.m. the gratuity is payable at this rate.
From India, Mumbai
Only the poster has to explain the reason for the 3% reduction in the basic salary of the employees. May be due to restructuring of the salary by adding the reduced amount in basic to any other allowances in the salary structure. The PG Act,1972 is not concerned with the revision of the salary structure but it is concerned with the last drawn sum of basic + D.A ,if any payable to the employee on the date of termination of his employment for the purpose of payment of gratuity.
From India, Salem

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