Sir / Madam,
Kindly let me know while calculating gratuity whether only the Basic pay is taken into consideration or Basic pay + DA is considered.
Whether the rule for Gratuity is different for University approved teachers, as these teachers have summer vacation and Diwali (Winter vacation) and Christmas vacation. Whether for these teachers the facility of Gratuity is applicable after 10 years of continuous service or after Five years of continuous service. Please explain with rules related with Gratuity act.
Thanks,
Vijay.
From United States, Chicago
Kindly let me know while calculating gratuity whether only the Basic pay is taken into consideration or Basic pay + DA is considered.
Whether the rule for Gratuity is different for University approved teachers, as these teachers have summer vacation and Diwali (Winter vacation) and Christmas vacation. Whether for these teachers the facility of Gratuity is applicable after 10 years of continuous service or after Five years of continuous service. Please explain with rules related with Gratuity act.
Thanks,
Vijay.
From United States, Chicago
As per Gratuity Act, an employee who puts in 5years of continuous service including teachers in educational institutions is eligible for gratuity.For calculation of gartuity, it is only basic +DA that is to be taken for computing gratuity that was last drawn by the employee.However if there is any emolument which has the character of basic or DA also need to be included. For example, annul increments granted will form part of teh basic pay in public sector undertakings and count for gratuity.
B.Saikumar
HR &Labour Law advisor
Mumbai
From India, Mumbai
1899B.Saikumar
HR &Labour Law advisor
Mumbai
From India, Mumbai
Give an option for research, given above, you get the details you need...... already being well discussed.......
Actually, there is no calculation pertaining to that. It is the fixed amount in lumpsum given by the company to the employee for his loyal service for continuous 5 years in the company, as a token of gratitude.
Refer Payment of Gratuity Act, 1972
From India, Bangalore
Actually, there is no calculation pertaining to that. It is the fixed amount in lumpsum given by the company to the employee for his loyal service for continuous 5 years in the company, as a token of gratitude.
Refer Payment of Gratuity Act, 1972
From India, Bangalore
Dear Vijay
The Gratuity Act 1972 prescribes under sec.4(2) the manner in which gratuity needs to be calculated which shall be at the rate of 15 days wages last drawn by an employee for each completed year of servcie and any period in excess of six months need to be taken as one year. The wages for the purpose of calculation of gratuity shall be Basic + DA but not any other allowance. It is no longer a bounty to be given by an employer out of his grace since the Act vests in the employee the right to recover gratuity if not paid or paid short by approaching the Controlling auhority under the Act.
B.Saikumar
HR & Labour law Advisor
Mumbai.
From India, Mumbai
The Gratuity Act 1972 prescribes under sec.4(2) the manner in which gratuity needs to be calculated which shall be at the rate of 15 days wages last drawn by an employee for each completed year of servcie and any period in excess of six months need to be taken as one year. The wages for the purpose of calculation of gratuity shall be Basic + DA but not any other allowance. It is no longer a bounty to be given by an employer out of his grace since the Act vests in the employee the right to recover gratuity if not paid or paid short by approaching the Controlling auhority under the Act.
B.Saikumar
HR & Labour law Advisor
Mumbai.
From India, Mumbai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc