Dear Fraternity,
I have few queries on Gratuity eligibility and Payment of Bonus;
Firstly, on Bonus recent amendment have fixed the wage ceiling to Rs 7000 or Minimum wage whichever is higher, now for the employees who draw basic salary (read including DA) less than the ceiling (Rs 7000/-) and his/her basic is below the minimum wages fixed by the state for the skill category (as bifurcation of Minimum wages case is still pending with apex court and PF dept kept its enforcement circular in abeyance) so for bonus calculation which wages to be reckoned with Basic or state Minimum Wages ? (i.e. Basic Rs 5000/- and Min wages Rs 5750/-)
Secondly, Gratuity eligibility is continuous five years of service( 240 Days working in 12 months to be counted as continuous service), if employee has worked for 7 years in an organization but in 4th year he / she did not clocked 240 days. Whether the employee will be eligible for Gratuity ?
Hope to hear your views and any legal clarification if in vogue.
Thanking You,
S R Shivrayan
I have few queries on Gratuity eligibility and Payment of Bonus;
Firstly, on Bonus recent amendment have fixed the wage ceiling to Rs 7000 or Minimum wage whichever is higher, now for the employees who draw basic salary (read including DA) less than the ceiling (Rs 7000/-) and his/her basic is below the minimum wages fixed by the state for the skill category (as bifurcation of Minimum wages case is still pending with apex court and PF dept kept its enforcement circular in abeyance) so for bonus calculation which wages to be reckoned with Basic or state Minimum Wages ? (i.e. Basic Rs 5000/- and Min wages Rs 5750/-)
Secondly, Gratuity eligibility is continuous five years of service( 240 Days working in 12 months to be counted as continuous service), if employee has worked for 7 years in an organization but in 4th year he / she did not clocked 240 days. Whether the employee will be eligible for Gratuity ?
Hope to hear your views and any legal clarification if in vogue.
Thanking You,
S R Shivrayan