Gratuity for International Workers: Is It Calculated Differently Than for Indian Employees?

Dear All,

Please share your views on the applicability of gratuity payments to international workers. Does the calculation differ from that for Indian employees?

Appreciate your early revert.

Dear Amanullah,

I think it depends on the organization in which the particular international worker is employed. For example, if an Indian company employs a foreign national in its international operations, the gratuity may be as per the Payment of Gratuity Act, 1972, or as per the special and specific terms of the contract of employment between the two.

Dear Umakant ji,

If an Indian employee is deployed out of India and resigns from there, then as part of calculating the full and final settlement and gratuity payment, we need to understand which wages should be considered for paying gratuity. Should we calculate gratuity based on his last basic salary in India or in the respective country?

Dear Rahul,

Strictly speaking, the actual wages last drawn, irrespective of the place of posting, have to be taken into account for gratuity calculation. However, if there is any specific clause in the on-site agreement for converting the salary to the parent country's corresponding scale in case of termination of employment while serving abroad, I am of the opinion that such a term will prevail.

Thank you.