sudipta-choudhury1
My company pays Basic Salary and Flat allowance. Is flat allowance considered as part of salary for Gratuity calculation
From India
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Industrial Relations And Labour Laws
Gurupada1986
Hr Manager

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.



Gurupada1986
11

gratuity calculation is Last Basic/26*15*no of years work other allowance not add in gratuity calculation i am attached gratuity calculation sheet for better understand
From India, New Delhi

Attached Files (Download Requires Membership)
File Type: xlsx Gratuity calcutation.xlsx (20.0 KB, 44 views)

Madhu.T.K
3791

It depends on how the allowance is treated in salary calculation. In my opinion all allowances which can be described in terms of money before hand and as mentioned in the employment contract should be part of salary for all purposes including gratuity calculation. My logic is that if your 'salary' for deduction of loss of pay is gross salary, then it should be the salary for gratuity purpose also. On the other hand, if you get the alliances in full when you take a few days' LOP (leave without pay) then that allowances should not be taken as part of salary but they will be outside the purview of salary. Most of the companies calculate the LOP on total salary/ gross salary and in such cases it should be the gross salary which should attract gratuity.
From India, Kannur

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 @ 2022 CiteHRŽ

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