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 inbetween 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 to go about issuing Gratuity to him. Is that I have to calculate on the 100% of his actual salary or I have to take only 50 % which was paid to him for the last working month of his tenure.
Pl. clarify.
regards,
Vinod Narayanan
From India, Bangalore
For example a person has given his resignation on 31.07.2010, but he was on leave inbetween 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 to go about issuing Gratuity to him. Is that I have to calculate on the 100% of his actual salary or I have to take only 50 % which was paid to him for the last working month of his tenure.
Pl. clarify.
regards,
Vinod Narayanan
From India, Bangalore
Dear Vinod Narayanan,
For calculation of payment gratuity, the employee's last drawn salary will be taken into account, but not his last earnings. Accordingly salary would be 100%, without taking the LWOP into account.
Abbas.P.S
From India, Bangalore
517For calculation of payment gratuity, the employee's last drawn salary will be taken into account, but not his last earnings. Accordingly salary would be 100%, without taking the LWOP into account.
Abbas.P.S
From India, Bangalore
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
From India, Hyderabad
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
From India, Bangalore
Dear Vinod Narayanan,
The interpretation of wage is reproduced from the 4(2) of the Payment of Gratuity Act as under:
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". Rate is arrived as wages earned divided by attendance.
Abbas.P.S
From India, Bangalore
The interpretation of wage is reproduced from the 4(2) of the Payment of Gratuity Act as under:
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". Rate is arrived as wages earned divided by attendance.
Abbas.P.S
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc