Treatment of Gratuity Sec.10 (10):
Government employees and employee of a
local authority
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Employees
covered under Gratuity Act
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Any
other employee
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Fully
exempt
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Minimum of the following 3 limits:
(1) Actual
gratuity received, or
(2) 15
day's salary for every completed year, or part thereof exceeding six months
(7 day's salary for each season for an employee in a seasonal establishment);
or
(3) Rs. 3,50,000
Meaning of Salary:
(i) Basic
salary plus Dearness allowance.
(ii) Last
drawn salary (average salary of preceding three months in case of piece rated
employee)
(iii) No.
of days in a month to be taken as 26
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Minimum of the following 3 limits:
(1) Actual
gratuity received
(2) Half
months average salary of each completed year of service.
(3) Rs.
3,50,000
Meaning of Salary:
(i) Basic
Salary plus D.A. to the extent the terms of employment so provide Commission,
if fixed percentage of turnover.
(ii) Average
salary of last 10 months preceding the month in which event occurs.
(iii) Only
completed year of service is to be taken.
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