I resigned from the company on 02.05.2024 and received the gratuity and leave encashment based on my existing salary. On June 5, 2024, the company increased the salary with effect from 01-04-2024, with retrospective effect. Am I eligible for the gratuity and leave encashment on the incremental salary?
From India, Kozhikode
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From India, Kozhikode
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Yes. If the salary revision is a general revision applicable to all employees as part of any settlement or award, then the benefit of that settlement should be available to all employees who are on the rolls on the date of effect.
At the same time, if it is a revision based on performance as evidenced by a revision letter issued individually to each employee, then the company should not have given you any increment letter, and in such a scenario, you should not have been considered for the increase.
The former applies in PSUs and in companies where there is an organized pay system, but the latter is applicable to many more private establishments that do not follow the principles of compensation.
From India, Kannur
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4526At the same time, if it is a revision based on performance as evidenced by a revision letter issued individually to each employee, then the company should not have given you any increment letter, and in such a scenario, you should not have been considered for the increase.
The former applies in PSUs and in companies where there is an organized pay system, but the latter is applicable to many more private establishments that do not follow the principles of compensation.
From India, Kannur
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You'll have to get your 'last pay drawn' (LPD) revised with effect from 1.4.2024, and you'll have to be paid arrears of salary for the month of April (full month) and 2 days for May '24. Once this is done, you are entitled to receive the difference in gratuity and leave encashment as well, based on the revised LPD.
From India, Bangalore
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From India, Bangalore
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