How to calculate gratuity as per Gratuity Act 1972
14-Sep-2023 (In Labour & Service Law)
Formula Used (Basic Salary * Years * 15 / 26) is not correct. As per the Gratuity Act 1972 The Formula Should be Basic+DA * Years * 15 / 26 if the DA is not applicable in the company then 120% of Basic is consider as a DA. As per my knowledge The Gratuity amount should be (Basic + DA 120%). I have done the R&D but did not found any such Law.IF company did not have DA in salary structure the gratuity is calculated on basis only. How to calculate gratuity?
An employee who has put in his service for a period of 240 days in fifth year will be deemed to have continued in the service for 1 year.
Mettus Beardsell Ltd., Madrs Vs. RLC(C) 1998 LLR 1072(Mad) In case employer fails than you can file a petition with the Asst.Commissioner of Labour of your area claiming Gratuity.
Mettus Beardsell Ltd., Madrs Vs. RLC(C) 1998 LLR 1072(Mad) In case employer fails than you can file a petition with the Asst.Commissioner of Labour of your area claiming Gratuity.
you shall calculate the gratuity amount with basic and dearness allownce also. dearness allownce should be consider for the gratuity . you are rightly mantioned the formula as your statement . basic + d a [if aplicable ] shold be pay .
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