Dear Seniors,
I would like to know that as per the gratuity act, the calculation is last basic pay * number of years in service * (15/26). However, one of my friends says that as per the latest amendment, if an employee has completed his/her service for more than 10 years, the normal calculation does not apply to him/her. The actual calculation, according to my friend, is last basic pay * number of years in service * (26/26).
Therefore, if his statements are correct, can anyone show the notification regarding such changes?
From India, Delhi
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18I would like to know that as per the gratuity act, the calculation is last basic pay * number of years in service * (15/26). However, one of my friends says that as per the latest amendment, if an employee has completed his/her service for more than 10 years, the normal calculation does not apply to him/her. The actual calculation, according to my friend, is last basic pay * number of years in service * (26/26).
Therefore, if his statements are correct, can anyone show the notification regarding such changes?
From India, Delhi
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Gratuity calculation is still based on 15/26 only, regardless of the number of years of service. There are demands from trade unions to enhance gratuity by paying one month's salary for each year. Even that demand is also not related to the number of years of service.
Regards,
Abbas. P.S
From India, Bangalore
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Regards,
Abbas. P.S
From India, Bangalore
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt