Hello Everyone,
I have a query about gratuity calculation.
One of our employees officially retired on completing 58th year of age as on 04.09.2014 but continued working in the company until 23.11.2023. However, the HR department calculated his gratuity based on his last drawn salary as of 23.11.2023 instead of his last drawn salary as of 04.09.2014. His basic salary on 23.11.2023 was Rs. 29,113, while on 04.09.2014 it was Rs. 18,486.
Could you please provide guidance in accordance with the Gratuity Act in Gujarat?
Thanks in advance.
From India, Ahmedabad
I have a query about gratuity calculation.
One of our employees officially retired on completing 58th year of age as on 04.09.2014 but continued working in the company until 23.11.2023. However, the HR department calculated his gratuity based on his last drawn salary as of 23.11.2023 instead of his last drawn salary as of 04.09.2014. His basic salary on 23.11.2023 was Rs. 29,113, while on 04.09.2014 it was Rs. 18,486.
Could you please provide guidance in accordance with the Gratuity Act in Gujarat?
Thanks in advance.
From India, Ahmedabad
The HR department was right in calculating the gratuity. Under Payment of Gratuity Act there is no mention about the age, say 58 years, for superannuation or retirement. If your age of superannuation is 58, and if the employee has continued to work beyond that, the actual date of exit, ie, 23-11-2023 should be taken as date of leaving, and for calculation of gratuity you should take his salary as on 23-11-2023, ie, 29,113, and also the service till 23-11-2023.
From India, Kannur
4193From India, Kannur
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