Hi Bhuvnesh,
Refering to the formula for gratuity calculation as shown in page 4 of your attachment, it seems that out of the total wages one can earn in total 26 days (i.e. 1 working month), only 15 days wages is paid for each completed years of service irrespective of who has completed how many years of service. In other words, Mr.X may have completed 5 years, Mr.Y 7 and Mr.Z 10. But the basis of calculation for all of them is always limited to 15 days irrespective of the difference in the no.of year individually completed. Thus, the onus of gratuity accumulation is limited to 15 days which also means only i.e. 15/26 = 57.69% of total wages per month.
If Gratuity is considered as an award for long and meritorious service, then shoudn't longer service period be awarded better? Shouldn't there be a difference in gratuity accumulation of two staffs with 7 and 10 completed years respectively?
I understand that gratuity provisions are legally guided. But aren't legal provisions also to be logically based? Probably, the assumption is, people with higher no.of service years have higher wages. But isn't gratuity all about recognizing "no.of years of dedicated service" rather than " hierarchy of wages"? If yes, how is it reflected in the formula?
Would appreciate some clarifications.
Rgds