Dear Team,
I joined an enterprise firm in January 2014. The salary slip is contained below. Kindly let us know the calculation of gratuity, as the formula says basic + da.
BASIC + BASIC II + HRA + CONVEYANCE + SPL.ALLW.
Usha
From India, Bangalore
I joined an enterprise firm in January 2014. The salary slip is contained below. Kindly let us know the calculation of gratuity, as the formula says basic + da.
BASIC + BASIC II + HRA + CONVEYANCE + SPL.ALLW.
Usha
From India, Bangalore
Hi,
In your case you can consider the whole Basic salary ( Basic + Basic II) for Gratuity calculation purpose.
Not sure what is Basic II but it should be something like special Basic I hope, which should also be considered.
From India, Madras
956In your case you can consider the whole Basic salary ( Basic + Basic II) for Gratuity calculation purpose.
Not sure what is Basic II but it should be something like special Basic I hope, which should also be considered.
From India, Madras
There is rule that gratuity should be calculated only on Basic wages and Dearness allwoance. If the allowances like Specila allowance is a component of salary paid to all the employees in the establishment, that will also be considered for gratuity calculation. The Act defines the term wages as total emoluments with the exemption of commision, overtime wages, HRA, bonus and similar allowances. The exclusion part is not exhaustive but it should be similar to those mentioned.
From India, Kannur
From India, Kannur
Hi Ushsniaha,
I presume the basic II represents Special pay considered to be part of Basic, common in govt & PSUs, mostly carved out from the FDA/VDA emerging (merging part of DA) out of wage settlement. If yes, then this basic II can account for gratuity computation. So, combination of basic + DA / 26 x 15 x no.of qualifying years.(15 days salary for every year of qualifying service).
From India, Bangalore
I presume the basic II represents Special pay considered to be part of Basic, common in govt & PSUs, mostly carved out from the FDA/VDA emerging (merging part of DA) out of wage settlement. If yes, then this basic II can account for gratuity computation. So, combination of basic + DA / 26 x 15 x no.of qualifying years.(15 days salary for every year of qualifying service).
From India, Bangalore
Dear Usha,
Gratuity is calculated using the formula:
Gratuity = (Basic + DA) × 15 × Years of Service / 26.
Only Basic and DA are included; HRA, Conveyance, or Special Allowance are excluded. Kindly share your Basic + DA and years of service for an accurate calculation. <a href="https://basketballstars-game.io">basketball stars</a>
From Vietnam, Hanoi
Gratuity is calculated using the formula:
Gratuity = (Basic + DA) × 15 × Years of Service / 26.
Only Basic and DA are included; HRA, Conveyance, or Special Allowance are excluded. Kindly share your Basic + DA and years of service for an accurate calculation. <a href="https://basketballstars-game.io">basketball stars</a>
From Vietnam, Hanoi
The interpretation of 'Wages' keep on debated time and again. For better clarity the extract of the Act may be noted -
xxx Section: 2 Definitions. In this Act, unless the context otherwise requires, - (a) "appropriate Government"' means, -
7 (q) "retirement" means termination of the service of an employee otherwise than on superannuation;
[8] [(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment;]
(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which arc paid or arc payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance. xxxxx
It's seen questions arise w.r.t. many components of emoluments as they are not common & identical across many sectors. Generally known are Basic & DA. Whereas differences arise w.r.t.various allowances and other benefits. While Sec.8(s) clearly states exclusions viz bonus, commission, HRA, OT AND ANY OTHER ALLOWANCE. Which amply clear 'any other allowance'. But fact remains disputes & differences are never ending. Any contentious components can only be clarified by court cases. As such it's not appropriate to pass judgment w.r.t. what is to be included and what are all to be excluded.
e.g., Anglo French Textiles Ltd.Pondichery Vs.Labour Court-Madras HC (22.7.1980) reg.'incentive wages' paid forms part of 'Wages' for gratuity computation.
And there are many such cases dealing with such components.
From India, Bangalore
xxx Section: 2 Definitions. In this Act, unless the context otherwise requires, - (a) "appropriate Government"' means, -
7 (q) "retirement" means termination of the service of an employee otherwise than on superannuation;
[8] [(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment;]
(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which arc paid or arc payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance. xxxxx
It's seen questions arise w.r.t. many components of emoluments as they are not common & identical across many sectors. Generally known are Basic & DA. Whereas differences arise w.r.t.various allowances and other benefits. While Sec.8(s) clearly states exclusions viz bonus, commission, HRA, OT AND ANY OTHER ALLOWANCE. Which amply clear 'any other allowance'. But fact remains disputes & differences are never ending. Any contentious components can only be clarified by court cases. As such it's not appropriate to pass judgment w.r.t. what is to be included and what are all to be excluded.
e.g., Anglo French Textiles Ltd.Pondichery Vs.Labour Court-Madras HC (22.7.1980) reg.'incentive wages' paid forms part of 'Wages' for gratuity computation.
And there are many such cases dealing with such components.
From India, Bangalore
Whenever phrases like 'other allowance', 'other forms', 'other devices', 'other agencies' etc are used in continuation to certain specific expressions, it should be construed to have the same characteristics which the specific expressions have, says the doctrine of ejusdem generis. Therefore, when OT, HRA, Commission and Bonus are expressively given as exclusions in the definition of wages, any 'other allowance' should have characteristics similar to bonus, HRA, overtime allowance or commission. the common thing about these allowances is that these allowances are not fixed, and payment of these are depended upon certain conditions, like, overtime is paid to those who work overtime, commission is based on some results, HRA is paid as a compensatory allowance and is paid only to those who reside in leased accommodation and to whom whose spouse does not get it, bonus is paid subject to profitability etc. the amount of these allowances will not be mentioned in the contract of employment as part of wages. Therefore, if you have education allowance paid to those employees whose children are studying, that allowance is an allowance similar to excluded allowances. if you have Hill station allowance, that will not form part of wages but it will come under 'other allowance'.
it is interesting that many companies have "other allowances" as a component of salary. It should be understood that there is no such allowance called 'other' allowance.
From India, Kannur
it is interesting that many companies have "other allowances" as a component of salary. It should be understood that there is no such allowance called 'other' allowance.
From India, Kannur
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SALARY SHEET CALCULATION.xls