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Yogita   22 March 2017

Gratuity calculation for onsite

Hi All,
I need help to calculate my Gratuity with below scenario :
I joined in 2006 in INDIA and after one year transferred onsite and worked for 7 years and resigned when I was at onsite.
Now I joined local company here. When I  mailed HR India to send me the gratuity details he sent be below calculation:
India Stay :  April 2006 till April 2007 :
 1 Year April 2006 till April 2007 :
Last Salary drawn in April 2007  *  15/26 * No of years 
 
Abroad Stay: April 2007 till  Feb 2014 :
Last Salary drawn in April 2007  *  15/26 * No of years 
 
Problem: for abroad stay calculation they have considered last drawn salary from India  for month of April 2007.
 
As per my understanding they should considered last salary drawn from abroad at the time of leaving i.e. Feb 2014.
Please guide and let me know if there is any concrete law which clarifies this
 
Thanks ,
yogita


Learning

 7 Replies

Ritesh Maity (Labour Law Advocate)     22 March 2017

For the purpose of calculation of gratuity your last drawn salary (only the basic and D.A.) should be considered. The Payment of Gratuity Act is very clear about that. Kindly go through it.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     22 March 2017

Calculate your gratuity on line through this website. https://www.moneycontrol.com/personal-finance/tools/gratuity-calculator.html

Yogita   22 March 2017

Thanks Ritesh for the reply.  But for the onsite HR is calculating  last salary drawn from India 7 years ago. Is this per law or they should consider last salary drawn at onsite? Offcourse I will go throgh the Grauity act but is this scenario clearly mentioned .

Thanks , Yogita

 

Ritesh Maity (Labour Law Advocate)     22 March 2017

There is law that gratuity should be calculated on last drawn salary. 

______________________________________________________

“wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.

For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned

______________________________________

 

Please go through the Act.

Kumar Doab (FIN)     12 April 2017

There were many threads on similar query that you can search in "SEARCH" option.

The employers declined to pay Gratuity for period employee was on Foreign Assignment.

e.g;

https://www.lawyersclubindia.com/forum/Gratuity-eligibility-59745.asp

https://www.lawyersclubindia.com/forum/Gratuity-unpaid-67376.asp

 

In some threads it is posted by querists that employer agreed to pay Gratuity @ wages  last drawn as in India. 

Atleast I am happy to note that employers in your/private sector have been agreeing to pay Gratuity for Foreign assignments.

 

 

 

Kumar Doab (FIN)     12 April 2017

Which establishment was processing salary and disbursing for payment to you?

Parent establishment that deputed to you?

Do you have service rules mentioning payment of  Gratuity/ERx. Gracia for foreign assignment?

It is contentitious issue and need to prove that:in your case there cannot be any other conclusion but to hold that the service on deputation/foreign assignment has to be treated as equivalent to service in his parent department. 

jackmen   17 January 2018

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