School Management and Gratuity Claims

Our school is being run by the Sabha. It was a private school at that time. In the year 1997, the management accepted grants from the state government under the 95% aided schools scheme. In 2012, the entire staff of the school, who were being paid from the 95% grants, was taken over by the Himachal government, and the management stopped accepting grants from the state government. One year later, the employees who were taken over applied for gratuity claims under the Gratuity Act.

Our point of question is, what would be the basis of salary calculations for the payment of gratuity? The salary paid from grants was high, and the management normally pays much less salary to the employees who were not aided teachers.

From India, Shimla
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You need to calculate the gratuity on the last drawn (rate) Basic + DA by the teacher. If the Basic + DA is less than the minimum wage rate applicable to their category, you need to calculate it based on the minimum rate applicable.
From India, Mumbai
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