The act prescribes calculation based on last drawn salary since this involves a question of law that last drawn salary of month or day you can challange same in high.coury and can claim relief.
Gratuity
Retired from a nationalised bank. On the date of retirement the grade was reduced in a disciplinary and appeal proceedings and the final order was passed after 21 months of retirement. Gratuity has been calculated on the basis of last day salary instead of last month salary. The punishment has been awarded under service regulations and not under pension regulations. Please let me know the legal status
Asked 5 years ago in Labour
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9 Answers
The gratuity amount depends upon the tenure of service and last drawn salary. It is calculated according to this formula: Last drawn salary (basic salary plus dearness allowance) X number of completed years of service X 15/26
Hi
You are liable to receive gratuity according to the updated status of your employment, means the salary status on the last day of your retirement will be applicable on the payment of the gratuity.
Thank You
It appears that no appeal has been preferred before the Administrative Tribunal against he order passed in the department proceeding.
If that is so then there is no option but to adhere to the direction passed by the appellate body.
There is no redirection to fix the retiral benefit on the basis of last date of salary than the last month of salary.
Prefer an appeal before the SAT/CAT.
On the basis of subsistence allowance?
What was the charge?
In a case which i am dealing with for employee of nationalised bank, employee has been terminated on various charges of misconduct.
We can challenge your matter before labour as well as High Court.
Gratuity is paid at a rate of 15 days wages for every completed year of service or part thereof in excess of Six months. The wages here means wages last drawn by the employee. The "15 Days Wages" will be calculated by dividing the last drawn wages by 26 and multiplying the result with 15. But under section 4(3), the maximum gratuity that is payable is fixed at Rupees 20,00,000.
(Average monthly salary is to be computed on the basis of average of salary for 10 months immediately preceding the month (not the day) of retirement).
Gratuity is a benefit received by an employee for services rendered to an organisation. For companies covered under the Gratuity Act, this benefit is paid when an employee completes five or more years of service with the employer. An employee gets gratuity when he/she resigns, retires or is laid off.
Dear Sir,
All these technical issues will have to be interpretated by the High Court. Normally such issues will be interpretated in favor of employee. Better try by approaching High Court and get the difference amount.
it should be for minimum of five year of service and more than 6 months it will be a year considered. It should be last months salary.
Gratuity is calculated according to this formula: Last drawn salary (basic salary plus dearness allowance) X number of completed years of service X 15/26. According to this formula, the time period of over six months or more is considered as one year.
Since you are not a daily worker, you have fullest right to claim last drawn monthly salary for calculating Gratuity
