Gratuity payment - basic INR 8225/- based on 21 days on November 2019 after which he resigned

soumalya-sen1
I have a question to help my friend.Please if anyone can help. If his basic salary is INR 11750 and he have worked for a company for 7 yrs and 8 months and have resigned from the company on 21st November then what will be his Gratuity amount payable.
The company where he has worked for has computed his basic INR 8225/- based on 21 days on November 2019 after which he resigned and calculated the last drawn basic for gratuity payment.
Now my question is the last drawn basic on which the gratuity calculation is to be made will be Rs.11750/- or Rs. 8225/-?
soumalya-sen1
I have a question to help my friend.Please if anyone can help.If his basic salary is INR 11750 and he have worked for a company for 7 yrs and 8 months and have resigned from the company on 21st November then what will be his Gratuity amount payable.
The company where he has worked for has computed his basic INR 8225/- based on 21 days on November 2019 after which he resigned and calculated the last drawn basic for gratuity payment.
Now my question is the last drawn basic on which the gratuity calculation is to be made will be Rs.11750/- or Rs. 8225/-?
fc.vadodara@nidrahotels.com
The Basic Salary for Gratuity calculation is Rs. 11,750/- and not Rs. 8225/-. The Act states Last Drawn Salary and not Last Earned Salary
vmlakshminarayanan
Hi,
Actual last drawn basic +DA salary to be considered for Gratuity calculation which is Rs.11750 as per your statement. Your friends Gratuity eligibility will be Rs.54231/-. total. 7.8 years to be rounded off to 8 years for calculation purpose.
Madhu.T.K
In my opinion, it is not only the last drawn basic salary, ie, Rs 11750 in the given case, but the entire salary including allowances which are payable as per contract of employment that should be considered for calculating gratuity. This is because the salary for the purpose of payment of gratuity means the total amount payable to an employee as per the contract of employment and not just on the basic salary. Please follow the link also.
Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary
jayakumar_epuri
Whether Gratuity will be applicable to the CTC employees?
Madhu.T.K
What is CTC employees?
There is no such employee under any Labour law. True, some employers have decided to include all their contributions which are legally payable to the employees from month of their joining till their retirement as cost of labour/ employees/ personnel cost and thereby referring it as cost to company and finding it as reasonably good to lure and attract employees to join them. But that does not mean that they are not employees and are exempted from labour laws.
If you mean to say that CTC employee means an employee whose remuneration for work as per offer letter contains contribution payable by the employer towards PF, Bonus, Gratuity etc, then I would say that they are also employees and as such covered by Payment of Gratuity Act. Whatever be the basic pay mentioned in their offer letters, the total fixed salary as per offer letter which is considered for deciding their pay for one day when he takes a leave without pay will be the bas for calculating gratuity.
fc.vadodara@nidrahotels.com
You mean FTC employees I believe, CTC is cost to company. whereas FTC means Fixed Term Contract employees. Now with regards to your query whether FTC Employees are eligible for gratuity. Please find enclosed herewith the Notification for your kind perusal.
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