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

AI Summary

Gratuity Calculation Clarified: Employee Resigned Before Rule Change, Not Eligible for Increased Benefit Under May 24, 2010 Notification. A user inquired about the correct gratuity calculation for an employee who resigned on May 5, 2010, and left the company on July 9, 2010, after serving for 10 years with a basic salary of 2,50,000. The confusion arose due to a change in the gratuity rule on May 15, 2010, which increased the gratuity liability from Rs. 3,50,000 to Rs. 10,00,000. A respondent clarified that the notification effective from May 24, 2010, specifies that the revised benefit applies only to retirements occurring after this date, implying the employee is not eligible for the increased amount.