Dear Mayank,
I am working for a private firm for the last 30 years (since 1992).
My basic and DA is very low (Rs 21,000).
As you know, everything is calculated on basic DA salary. My service of 30 years will yield only some Rs 3 lakhs of gratuity when I leave this job.
Even my PF is calculated on Rs 21,000 so it also does not cross Rs 7 lakhs after such a long service.
Are there any rules for setting basic and DA? I am from Karnataka.
In India, people like me who are working in the private sector are affected. Even after working for 30 years, if my total settlement is not crossing Rs 10 lakhs, it is very unfortunate.
How does the government expect us to live the rest of our lives with these Rs 10 lakhs?
Are there any rules to set it right? Please help and suggest.
Thanks and regards
M Naik
Ans: Dear Mr Naik,
You are right that retirement benefits are calculated based on the last drawn salary.
The law only defines minimum wages and if your salary is above the minimum wages as per your job, then the employer is not eligible to provide any additional wages.
At this stage, I can only advise you to continue your employment as a consultant after retirement.