Hi there, one of our employees' gratuity calculation needs to be done as he has worked for 13 years. His salary components are given below:
- Basic: ₹3,700 per month
- HRA: ₹370 per month
- Con: ₹185 per month
- Special Allowance: ₹2,120
- Leave Salary: ₹775 per month
When I calculate gratuity based on the basic salary, it amounts to ₹27,750 ((Basic/26)*15*13). However, the employee is requesting the calculation to be based on gross salary, or else he will consider going to the Labour Court.
Please confirm if my calculation is correct. Are there any risks involved if the employee proceeds to the Labour Court?
Thank you.
- Basic: ₹3,700 per month
- HRA: ₹370 per month
- Con: ₹185 per month
- Special Allowance: ₹2,120
- Leave Salary: ₹775 per month
When I calculate gratuity based on the basic salary, it amounts to ₹27,750 ((Basic/26)*15*13). However, the employee is requesting the calculation to be based on gross salary, or else he will consider going to the Labour Court.
Please confirm if my calculation is correct. Are there any risks involved if the employee proceeds to the Labour Court?
Thank you.