Gratuity calculation

[udit gupta]

Dear Sir, Please advice:- Q:- Kamal resign on dated 5th of May 2010 and left to company on dated 9.7.10 his total service is 10 years and his basic salary is 2,50,000 then what amount is gatuity liability Rs. 350000 or Rs. 10,00,000. Because: 1) Gratuity rule change on dated 15th of May 2010 2) He resign on dated 5th of May 2010 3) He left the company date 9/7/10 when gratuity rule change of Rs. 10,00,000. So Kindl advice what is correct base of gratuity calculation. Rs 3,50,000 or Rs 10,00,000 Regards Udit

[Surender Gupta]

Notification dated 11-6-2010 is very specific. This notification is effective from 24-5-2010. Any retirement before such date would not be eligible for revised benefit. A careful reading of the notification would not leave any doubt.

AI Summary

Gratuity eligibility depends on retirement date relative to a notification's effective date; earlier retirements keep the prior ceiling. Gratuity eligibility and the applicable ceiling are determined by the employee's date of retirement/resignation relative to the notification's effective date; retirements before 24-5-2010 do not qualify for the revised higher gratuity ceiling.