TI CYCLES OF INDIA,AMATTUR vs M.K. GURUMANI .

The Supreme Court held that under Section 4(2) of the Payment of Gratuity Act, 1972, incentive wages paid based on piece rates must be considered as wages for the purpose of calculating gratuity. The Court affirmed the High Court's ruling that there is a distinction between 'wages' under the Gratuity Act and 'basic wages' under the Employees Provident Funds & Miscellaneous Provisions Act, 1952. The appeal was dismissed, upholding the entitlement of the respondents to gratuity including incentive wages.