We have implemented a gratuity policy through LIC for gratuity and premium submission on a yearly basis at the beginning of the financial year. Furthermore, one of our employees resigned after completing 6 years of service, but he is due for an increment for the last year with a revision of his basic salary. Please advise if he is eligible for gratuity based on the revised basic salary.
Regards,
Shiv Pandey
From India, Hardoi
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Regards,
Shiv Pandey
From India, Hardoi
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To my knowledge, gratuity is given based on the employee's last drawn basic salary. If you have revised his basic salary, he is eligible with his new basic amount. CiteHR members, please correct me if I have misquoted.
Thanks,
S. Narasimhan
From India, Bangalore
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8Thanks,
S. Narasimhan
From India, Bangalore
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Increment and Gratuity Eligibility
Was the increment given or planned and held back? Since gratuity is based on the last drawn salary, it will apply only if an increment was given.
I believe you are supposed to inform LIC of any increments or additions to the employee list, and they would adjust the increased premium accordingly, which you pay. If you suddenly increase the salary without informing them, I do not think they will adjust the payment accordingly.
From India, Mumbai
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Was the increment given or planned and held back? Since gratuity is based on the last drawn salary, it will apply only if an increment was given.
I believe you are supposed to inform LIC of any increments or additions to the employee list, and they would adjust the increased premium accordingly, which you pay. If you suddenly increase the salary without informing them, I do not think they will adjust the payment accordingly.
From India, Mumbai
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Increment Policy 2008-09 PPT.ppt
Salary Structure Policy ().xls