Hello, I left my previous organization (in 2023) after serving them for 11 years, 1 month, and 30 days. The last drawn salary was 74lpa. The basic salary, as per the salary slip, was ₹50,000 per month. So, the gratuity amount I received is based on the basic salary mentioned in the salary slip.
However, I now understand that, as per the new rules (April 2022), the basic salary has to be 50% (of what exactly I am not sure), so it should be more than what the company provided. What can be done?! How to proceed?!
From India, Jaipur
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However, I now understand that, as per the new rules (April 2022), the basic salary has to be 50% (of what exactly I am not sure), so it should be more than what the company provided. What can be done?! How to proceed?!
From India, Jaipur
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The wages as per the new Labour Code(s) are misleading. At the same time, the same is not in force. Since your date of accrual of gratuity is in 2023, the gratuity as per the present Payment of Gratuity Act will be applicable to you. Under the present system, gratuity should be calculated on the total emoluments excluding allowances like overtime allowance, commission, house rent allowance, and similar other allowances. Other allowances mean allowances similar to these excluded allowances. The excluded allowances are paid depending on some conditions, like overtime allowance is paid to those who do overtime work, commission is paid based on some results, like sales, house rent allowance is paid only to those who reside in leased accommodation and is not paid to all employees or employees who reside in own houses or whose spouses are in receipt of HRA.
Moreover, nowhere in the contract of employment will the amounts of these allowances be available. In the appointment order, the amount of overtime wages, amount of commission, or HRA will not be available. Therefore, all components of salary which are prefixed and are available in the contract of employment are salary for the purpose of computation of gratuity. It is not just basic pay and dearness allowance that will be considered for the computation of gratuity.
From India, Kannur
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4758Moreover, nowhere in the contract of employment will the amounts of these allowances be available. In the appointment order, the amount of overtime wages, amount of commission, or HRA will not be available. Therefore, all components of salary which are prefixed and are available in the contract of employment are salary for the purpose of computation of gratuity. It is not just basic pay and dearness allowance that will be considered for the computation of gratuity.
From India, Kannur
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Change in Gratuity Rule: as per the Act, employees are entitled to receive gratuity after 5 years of continuous work in the same entity. However, as per the New wage code 2022, employees will be entitled to receive gratuity even if they are employed for just one year. The main point here is that our member from Jaipur left the organization during 2023, and the implementation of the New Labour code, though passed in 2022, had its date of implementation deferred.
It appears that the government's plan is to roll out the labour codes from the beginning of the next fiscal year on April 1, 2025, to sync it with the business cycle. Therefore, payment of gratuity as per the revised scheme does not currently apply.
From India, Bangalore
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It appears that the government's plan is to roll out the labour codes from the beginning of the next fiscal year on April 1, 2025, to sync it with the business cycle. Therefore, payment of gratuity as per the revised scheme does not currently apply.
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc