Gratuity payment clarification - urgent

Vineet (s) (85 Points)

02 April 2011  

 

Hi,

I joined BACS on 21st January 2008 and my last working day was 7th Mar 2011. The company used to deduct 4.81% of Basic each year and show it in the CTC. My query is what amount of Gratuity I should have received - as per the company's calculation or the basic formula?

Below are the clarifications I received from my company relating to Gratuity payment. . I would like to know if the below calculations are correct or should the payment be made as per Basic*15*(number of years)/26.  Please advise. URGENT

 

Ø  Please be informed that for legacy BACS associates who are on the roles of the company as on 31st March 2009, Ex-gratia (TaxableGratuity) is paid if the associate leaves organization in less than 4 years 240 days.

 

Ex-gratia is calculated as follows –

4.81% on their accumulated Basic from the Date of Joining till your Last Working Day.

 

 

Ø  The  calculation of Basic*15/26*no of years is as per the Provisions of the Gratuity Act who completes 4 years 240 days of service with the company. Since your hire date is 21st January 2008 you will not be eligible for Gratuity Payment

 

Thanks,

Vineet