Hello Everybody,
I was in the process of calculating gratuity. the following is the wording that I could find.
The Payment of Gratuity Act, 1972 applies to factories and other establishments employing ten or more persons. On completion of five years service, the employees are entitled to payment of gratuity @15 days wages for every completed year of service or part thereof in excess of six months subject to a maximum of Rs.3.50 lakh. The current maximum limit is applicable from 24.9.1997. The wage ceiling for coverage under the Act has since been removed w.e.f. 24.05.1994.
It says 15 days of basic.
I worked in a company where we had 5 day work week. For all internal calculations 22 days was considered as average working days per month. (5days * 52 weeks / 12months = 22days/month)
Hence when I calculated Gratuity I calculated as below.
Monthly Basic * 15 / 22 * 5Years.
But the employer is calculating it as follows
Monthly Basic * 15 / 26 * 5Years.
I feel I am right because the rule says 15 days of Basic... Any inputs on this?
Thanks
Joe
