Auditor Query : Kindly clarify the Gratuity salaries is why decreased to employees Emp : X Salary - Gratuity : 17200 Previous Salary : 17500 Change in Salary : -3% Comments : ?
From India, Hyderabad
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From India, Hyderabad
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Gratuity Payment Calculation
As per Section 4(2) of the Payment of Gratuity Act 1972, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned. Therefore, where the last drawn wage is Rs. 17,200 per month, the gratuity is payable at this rate.
From India, Mumbai
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1593As per Section 4(2) of the Payment of Gratuity Act 1972, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned. Therefore, where the last drawn wage is Rs. 17,200 per month, the gratuity is payable at this rate.
From India, Mumbai
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Explanation for Reduction in Basic Salary
Only the employer has to explain the reason for the 3% reduction in the basic salary of the employees. This reduction may be due to restructuring the salary by adding the reduced amount in basic to any other allowances in the salary structure.
Impact on Gratuity Payment
The Payment of Gratuity Act, 1972, is not concerned with the revision of the salary structure, but it is concerned with the last drawn sum of basic + D.A, if any, payable to the employee on the date of termination of their employment for the purpose of gratuity payment.
From India, Salem
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Only the employer has to explain the reason for the 3% reduction in the basic salary of the employees. This reduction may be due to restructuring the salary by adding the reduced amount in basic to any other allowances in the salary structure.
Impact on Gratuity Payment
The Payment of Gratuity Act, 1972, is not concerned with the revision of the salary structure, but it is concerned with the last drawn sum of basic + D.A, if any, payable to the employee on the date of termination of their employment for the purpose of gratuity payment.
From India, Salem
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc