Salary definition for gratuity calculation clarified: periodic pay counts, allowances excluded; year means calendar year. Salary for clause (10) means periodical payments by an employer to an employee as compensation for services; allowances, perquisites, bonus or gratuity are excluded unless an allowance is merged into salary. The word year (except in 'year of completed service') denotes a calendar year (January-December); 'each year of completed service' means successive twelve-month periods reckoned from the date of joining, so averaging periods refer to calendar years immediately preceding the year of payment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Salary definition for gratuity calculation clarified: periodic pay counts, allowances excluded; year means calendar year.
Salary for clause (10) means periodical payments by an employer to an employee as compensation for services; allowances, perquisites, bonus or gratuity are excluded unless an allowance is merged into salary. The word year (except in "year of completed service") denotes a calendar year (January-December); "each year of completed service" means successive twelve-month periods reckoned from the date of joining, so averaging periods refer to calendar years immediately preceding the year of payment.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
