Regarding Gratuity, I need to know the clarification of Last Drawn Salary. For example, a person has given his resignation on 31.07.2010, but he was on leave in between often due to illness from 01.05.2010 onwards. Due to this loss of pay, his salary for the last 3 to 4 months has been only 50% of the actual salary. How should I go about issuing Gratuity to him? Do I have to calculate it based on 100% of his actual salary, or do I consider only the 50% which was paid to him for the last working month of his tenure? Please clarify.
Regards,
Vinod Narayanan
From India, Bangalore
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Regards,
Vinod Narayanan
From India, Bangalore
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Dear Vinod Narayanan,
For the calculation of payment gratuity, the employee's last drawn salary will be taken into account, but not his last earnings. Accordingly, the salary would be 100%, without taking the LWOP into account.
Abbas.P.S
From India, Bangalore
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530For the calculation of payment gratuity, the employee's last drawn salary will be taken into account, but not his last earnings. Accordingly, the salary would be 100%, without taking the LWOP into account.
Abbas.P.S
From India, Bangalore
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Yes I do agree with Abbastiti, while calculating gratuity , salary will be his last basic irrespective of LOP’s. I hope you are clear now.
From India, Hyderabad
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From India, Hyderabad
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Dear Mr.Abbas & Mr,Telekepalli, Can I get any supporting rule or act towards the same. If available please quote. regards. Vinod Narayanan
From India, Bangalore
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From India, Bangalore
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Dear Vinod Narayanan,
The interpretation of wage is reproduced from the Section 4(2) of the Payment of Gratuity Act as follows:
Explanation: In the case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen. Here, it is clearly stated that the calculation is based on the "monthly rate of wages last drawn." The rate is determined as wages earned divided by attendance.
Abbas.P.S
From India, Bangalore
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The interpretation of wage is reproduced from the Section 4(2) of the Payment of Gratuity Act as follows:
Explanation: In the case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen. Here, it is clearly stated that the calculation is based on the "monthly rate of wages last drawn." The rate is determined as wages earned divided by attendance.
Abbas.P.S
From India, Bangalore
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc