Warning: preg_match(): Unknown modifier 'w' in [path]/showthread.php on line 2297

Warning: preg_match(): Unknown modifier 'w' in [path]/showthread.php on line 2298

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381
How to calculate Gratuity on actual salary or wages declared by govt.? - CiteHR

No Tags Found!

SH

Shai89308

Executive Hr

AS

Ammu Shanvi

Human Resource

GS

G SHASHI KRISHNA

Senior Manager - Hr

AH

Aizant HR

Human Resources

MA

MARSHAL

Safety Officer

AK

Anish Katoch

Hr Executive

PR

PranjalR

Hr Recruiter

AP

Alka Pal

Hr Executive

Karthikeyan8195

Management Consultant

MK

Mohit Kumar Puri

Head Marketing

AU

Austex

Accounts Manager


GHARNAPALLU
1

If Gross Salary is less than M.W. Act declare by the Govt. How to calculate Gratuity on actual salary or wages declared by govt. For Example Govt. Declare 7500 (Basic)+ 2500 Sp. Allow. and actual Gross salary 8000/- which salary applicable for Gratuity.
From India, Pune
umakanthan53
5967

Dear Gharnapallu,

Though the sum total of the basic and D.A of the last drawn wages (based on the definition of " wages" under the Act) is one among the factors in the formula for calculation of gratuity under the Payment of Gratuity Act,1972, we have to note that it is not the wages actually drawn by tthe employee lastly on the date of his termination of employment but the "rate of wages last drawn" as per section 4(2) of the Act. So, the inescapable logical inference is that it is the wage drawable on the date of termination. As per sec.12(1) of the Minimum Wages Act,1948, it is the duty of an employer of any scheduled employment to pay wages to his employees at a rate not less than the minimum wages fixed under the Act.

Therefore, (a) if the last drawn wages is, in general, less than the minimum wages fixed, the employer has to pay gratuity only on the basis of the minimum wages payable.

(b)If the MW fixed by the Govt comprises of components in addition to basic wages, as per the definition of the term "wages" u/s 2(h) of the MW Act,1948 what you've mentioned as "spl. Allowance" will form part of the wages as it can not be bracketed into the excluded items under the definition. If I remember correct that there is a Supreme Court Ruling that the spl allowance if any granted to an employee, in the absence of the specific and explicit mention of its purpose, would form the essential part of the wage for the purpose of indirect monetary benefits of the employment. In effect, if the actual last drawn wages is less than the sum total of basic plus spl.Allow fixed by the Govt, the gratuity shall be payable only at that higher rate.

From India, Salem
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.




About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.