Hi, This was the reply sent to one of our members, Shivaranjani:
As per The Payment of Gratuity Act, 1972, gratuity has to be paid in the ratio of 15 days' wages for every completed year of service. To arrive at the daily wage, the monthly salary has to be divided by 26 as per the Government Order of minimum wages (excluding the weekly off days).
I would like to know what "G.O." stands for?
Thank you.
Regards,
Sarvesh
From United States, Salt Lake City
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As per The Payment of Gratuity Act, 1972, gratuity has to be paid in the ratio of 15 days' wages for every completed year of service. To arrive at the daily wage, the monthly salary has to be divided by 26 as per the Government Order of minimum wages (excluding the weekly off days).
I would like to know what "G.O." stands for?
Thank you.
Regards,
Sarvesh
From United States, Salt Lake City
Acknowledge(0)Amend(0)
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Payment of Gratuity Act, 1972 & The Rules.ppt
Gratuity calculation.doc