I have come across a case of payment of gratuity. Wherein the employee who has put in a service of 10 years and she is being paid consolidated salary. The concerned employee upon resignation has put a request to release the gratuity basis on the last consolidated salary. The monthly salary slip also show that the salary is being paid on consolidated basis.
Now the employer says they show 50% of consolidated salary as basic salary in form 16 hence they will calculate gratuity on 50% of consolidated salary only.
This case seems to be interesting one. I would like to know the opinion of all you expert guys.
Now the employer says they show 50% of consolidated salary as basic salary in form 16 hence they will calculate gratuity on 50% of consolidated salary only.
This case seems to be interesting one. I would like to know the opinion of all you expert guys.