Is My Gratuity Deduction Fair? Seeking Advice on Whether to Accept or Challenge It

Sir,

My name is Rajeev. My last basic salary was 15k, and my gross was 30k. I worked from July 2008 to May 2015.

Sir, can you please suggest my gratuity amount because my company is telling me 45k and also deducted 15k for that. I had given one day's notice. Is this the right amount? Should I accept it or should I go to court? There was no PF & ESI deduction in my salary. What should I do? I need your precious advice.

My dear friend,

You mentioned that your basic was 15K and gross 30K. Your employer's determination of gratuity was 45K, with a deduction of 15K, and you gave one day's notice, etc. From this information alone, people like myself will not be able to answer your question. Basic wages and dearness allowance need to be considered for the calculation of gratuity. Additionally, there is no mention of your exact dates of joining and relief.

If your basic pay is 15k and you have worked for 7 years in your organization, your gratuity amount will be Rs. 60,576.92.

Calculations:

W x Y x 15/26 where:
- W = Last wage drawn, i.e., basic + DA
- Y = Number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as a full year).
- 15 = 15 days salary
- 26 = No. of working days in a month.

15,000 * 15 * 7 / 26 = Rs. 60,576.92.

The company will deduct one month's salary (i.e., basic pay) for not serving the notice period.

Rs. 60,576.92 - 15,000 = Rs. 45,576.92.

The company should pay you Rs. 45,576.92 as a gratuity amount.

Dear Sir,

My exact date of joining was 19 July 2008, and I was relieved on 10 May 2015. Sir, my question is: how did my employer calculate my service as 6 years instead of 7 years? Can they deduct 1/3 of the total amount of gratuity for a one day notice period instead of 15 days? I need your expert advice.

Thank you.

Vijay sir,

I had mailed directly to the Company Director and accepted it with best wishes for a better future. So, why is he now deducting one month's salary (i.e., basic pay) according to you?

Dear Rajesh,

Since your total service is 6 years, 9 months, and 21 days, it has to be treated as 7 years. Hence, your gratuity, as correctly calculated by Vijaykumar, is Rs 60,577.00. However, after accepting your resignation, the management cannot deduct the notice pay from the amount of gratuity.

Thank you.

Dear Sir,

No employer can deduct the gratuity amount or hold the gratuity on this point. They will pay the full amount of gratuity that is due as above. However, they may ask you to pay the balance notice pay amount separately.

Regards

Your gratuity amount is Rs. 60577.00. If you are not attending your notice period after resignation, then the company has the right to deduct your notice period days from your final settlement. However, this deduction will not be made from your gratuity payment.