Dear All,I have a little confusion about calculation of gratuity as simply we calculate the same as :(((Basic +DA)/26)*15)*no. of working years but how we calculate when an employee gets an increament every year and the basic salary changed every year.can we calculate gratuity every year.please advise.thanks,ncj

This is to be calculated on last drawn rate of Basic & DA/VDA if any. We are not required to calculate gratuity every year. For more details go through section 4 of the Payment of Gratuity Act, 1972.

**With Regards,**

**R.N.Khola**

Sr. Associate (LL & IR)

**Skylark Associates, Gurgaon (Haryana)**

**(Labour Law Consultants)**

**(M) 09810405361**

Dear All,I have a little confusion about calculation of gratuity as simply we calculate the same as :(((Basic +DA)/26)*15)*no. of working years but how we calculate when an employee gets an increament every year and the basic salary changed every year.can we calculate gratuity every year.please advise.thanks,ncj |

Yes, He is entitled for the Gratuity.

As he has not resigned from any unit & perhaps use a transfer letter for moving from one unit to another.

His years of service within the group will get accumulated & made him entitled to claim gratuity.

Thanks & Regards

Deepak Jain

If you have taken any insurance policy under the P G Act, 1972 then contact your insurance branch office for having knowledge on payment of premium for your employees.

R.N.Khola

**Skylark Associates, Gurgaon (Haryana)**

(Labour Law Consultants)

(M) 09810405361

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