I have come across a case of payment of gratuity wherein the employee, who has served for 10 years, is being paid a consolidated salary. The concerned employee, upon resignation, has requested the release of gratuity based on the last consolidated salary. The monthly salary slip also indicates that the salary is paid on a consolidated basis.
Now, the employer states that they show 50% of the consolidated salary as the basic salary in Form 16; therefore, they will calculate gratuity based on 50% of the consolidated salary only.
This case seems to be an interesting one. I would like to hear the opinions of all you experts.
From India, Mumbai
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Now, the employer states that they show 50% of the consolidated salary as the basic salary in Form 16; therefore, they will calculate gratuity based on 50% of the consolidated salary only.
This case seems to be an interesting one. I would like to hear the opinions of all you experts.
From India, Mumbai
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What does her appointment letter say about her salary - consolidated or otherwise?
When the salary slip shows her entire salary as a consolidated one, the employee has the advantage to hold it for the purpose of gratuity under the PG Act, 1972, even if the employer contradicts this by means of another record like Form-16 issued under the Income Tax Rules.
From India, Salem
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6185When the salary slip shows her entire salary as a consolidated one, the employee has the advantage to hold it for the purpose of gratuity under the PG Act, 1972, even if the employer contradicts this by means of another record like Form-16 issued under the Income Tax Rules.
From India, Salem
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Dear Umakanthan, Thanks for your valuable update on the issue. The candidate though working since last 10 years had not been issued any appointment letter.
From India, Mumbai
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From India, Mumbai
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