Hi,
Had a query with regards to gratuity application. We are a organisation of 25 and has been into existence since 2005. We are taking up gratuity benefit for our employees and was trying to calculate the % of basic which should be considered monthly as gratuity.
In the whole process realised that if an employee completes 5 years and has a yearly increment of min 15-20% on his salary, how is the liability of employer justified when we consider the 4.81% of gratuity followed by companies generally and the gratuity payment post 5 years will be based on last drawn basic salary.
Please clarify.
Raj
Had a query with regards to gratuity application. We are a organisation of 25 and has been into existence since 2005. We are taking up gratuity benefit for our employees and was trying to calculate the % of basic which should be considered monthly as gratuity.
In the whole process realised that if an employee completes 5 years and has a yearly increment of min 15-20% on his salary, how is the liability of employer justified when we consider the 4.81% of gratuity followed by companies generally and the gratuity payment post 5 years will be based on last drawn basic salary.
Please clarify.
Raj