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: 3700/- per month
HRA: 370/- per month
Con: 185 per month
Special Allowance: 2120
Leave salary: 775/- per month
When I calculate Gratuity based on basic salary, it amounts to Rs. 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.
One of our employees' Gratuity calculation needs to be done as he has worked for 13 years. His salary components are given below:
Basic: 3700/- per month
HRA: 370/- per month
Con: 185 per month
Special Allowance: 2120
Leave salary: 775/- per month
When I calculate Gratuity based on basic salary, it amounts to Rs. 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.