Gratuity Calculation [Thread 469177]

Hi,
One of my employees was on leave with out salary for last 7 years. Now he has submitted the resignation letter. Which Salary is to be considered for calculating Gratuity. The salary he has last drawn 7 years back or the salary he would have get if he is not in leave without salary?

Hello Ranjith,
How could company allowed such a leave for the period of 7 Years ?
His name is still on Payroll Register?
For gratuity you needs to see 240 days of present working days in a year, follow standing rules of your company.
Count his last basic salary at time of resignation ( relieving ) for gratuity calculation, see your payroll register for the same for proof.
Seniors please put your light on this matter.
Regards,
Ashish

Hello Neha,
As per my point of view we could give Gratuity more than 10,00,000rs for tax limit gratuity is limited to 10lacs above we needs to deduct the tax as per income tax act.
There is no limitation for gratuity
Please clarify the same.
Regards,
Ashish