amit kumar Jaiswal (Accounts manager) (31 Points)
28 February 2012Dear All
In a tea company a worker retired after 19 years completed year of service. Geting promotion from sub staff to staff with his last drawn salary wasRs. 8000/-including DA .when he was sub staff his wages was Rs. 3000/- monthly he worked as a staff only 5 years and 14 years as a sub staff .please let me know how the calculation of gratuity would be done regarding number of completed year of service . Whether he is geting benefit of pension or not
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 29 February 2012
1.The calculation would be :
Number of completed years service x Last pay drawn x 15 /26 =Gratuity payable.
Accordingly it should be 19 x Rs 8000 x15 /26 = Rs 87,692/- as per the figures given by you.
For the purposes of gratuity it does not matter whether some one worked as staff or officer,what matters is the last Basic pay.
2.Regarding Pension you seem to get confused.There are 2 Pensions 1.under PF&MP Act,1951 and voluntory schemes operated by the corporates for the benifit of the employees.You may be in touch with your Personnel Dept for pension under PF&MP Act ,which will be fixed by the Office of the Regional Provident Commissioner's of your area.
kkm
CAclubindia
