Payment of Gratuity Act - calculation of 240 days...
1. 240 days - are these days counted as present by the employee only (excluding or including weekly off, national holiday, or approved leave)?
2. It's 4.8 M - (30 days * 8 M = 240), but it shows 4.9 M in many places. Which is correct?
Please guide...
From India, Mumbai
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51. 240 days - are these days counted as present by the employee only (excluding or including weekly off, national holiday, or approved leave)?
2. It's 4.8 M - (30 days * 8 M = 240), but it shows 4.9 M in many places. Which is correct?
Please guide...
From India, Mumbai
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Also, in many companies , Gratuity part of CTC .. .. 1.how deduction happens .... Monthly or Yearly? 2. if Employee leave less than 5 yr .. what happens to Gratuity deduction ?
From India, Mumbai
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From India, Mumbai
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In the case of Akilandeswari Mills Ltd., Salem v. Assistant Commissioner of Labour (Controlling Authority under Payment of Gratuity Act), Salem, 2000-I- LLJ 1411 (MAD. HC) : 1999 II LLN 262 : 1999 LLR 576, the Honorable Court held that while determining continuous service of an employee, cessation of work on weekly or national holidays shall also be included, as the cessation of work on such days is not due to any fault of the employee.
Regards,
From India, Delhi
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Regards,
From India, Delhi
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Gratuity in CTC may be shown as a cost to the company towards the employee, but there is no deduction made from the employee's salary on account of gratuity. It is a statutory benefit which the employer is required to pay to employees who have completed 5 or more years of service with the organization. For the purpose of calculating, the employee has worked for the full year, 240 days worked is the criteria. The gratuity is calculated at 15/26 x Basic salary x Number of years of completed service.
If the employee leaves before 5 years, the employer is not obligated to make any payment towards gratuity.
From India, Kolkata
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If the employee leaves before 5 years, the employer is not obligated to make any payment towards gratuity.
From India, Kolkata
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc