gratutiy judgement
raghavendra
(Querist) 27 October 2010
This query is : Resolved
sit.
please give me one judgement , that shows gratuity should be calculate on consolidate amount , which received by the employee.
thanking you
Jacob Pratap
(Expert) 13 November 2010
You may not find such judgment as the term 'wages' under the Payment of Gratuity Act, 1972 virtually means the basic pay plus DA. Onlyh in one case there could be a judgment where the gratuity is payable on the Minimum Wages fixed by the government provided the minimum wage fixed is the basic rate and linked with the variable dearness allowance i.e. under section 4(1)(i) of the Minimum Wages Act, 1948. This section reads as under:-
4. Minimum rate of wages
(1) Any minimum rate of wages fixed or revised by the appropriate government in respect of scheduled employments under section 3 may consist of -
(i) a basic rate of wages and a special allowance at a rate to be adjusted at such intervals and in such manner as the appropriate government may direct to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the "cost of living allowance");
