Payment of gratuity

ritesh (Querist) 17 May 2013 This query is : Resolved
In my company one director has not drawing any salary due to losses since January-2012. upto December -2011 he was taking salary Rs. 150000 per month. He is still a director but not taking any salary. Can he withdraw his gratuity amount or not. if not, how provision for gratuity can be made. It will be made as per last drawn salary of Rs. 150000 or salary taken in march-2013 and that is Zero. How his period of service will be decided for Gratuity purpose. If anyone can resolve my query I will be very thankful to him.

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Adv k . mahesh (Expert) 17 May 2013
for gratuity last drawn salary with no of years worked you have to take means the last salary paid has to be taken

Guest (Expert) 17 May 2013
His gratuity should be calculated based on the presumptive pay which he would have been entitled to receive on the last day of his service before retirement, irrespective of the fact whether he claimed his past salary or not. His total service, including service for which he did not take salary, should be taken in to account for the purpose of gratuity calculation.

R.K Nanda (Expert) 17 May 2013
agree with experts.

ritesh (Querist) 17 May 2013
Dear Sir
can you confirm if we can pay his gratuity upto that period to which he recd salary.

Guest (Expert) 17 May 2013
You can't ignore any service rendered by him. You will have to calculate gratuity till the end of his service. If he has sacrificed his salary for the several years, that does not mean you should try to impund or confiscate his due retirement benefits.