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

27th June 2010 From India, New Delhi

Labour Laws & Ir
Production/quality/ind. Engg/ppc
+6 Others

Dear Member,
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,
(LL & IR)

(Labour Law Consultants)

27th June 2010 From India, Delhi
Hello, The last drawn Basic salary will be taken into consideration for gratuity calculation.
28th June 2010 From India, Bangalore
Dear Navin, We will consider only the last drawn salary even though basic salary changed every year of a employee. (last drawn salary(basic+DA)*total years of service*15)/26 Regards, Sai Prasad.
29th June 2010 From India, Hyderabad
What about if a person works within group companies for 5 years i.e. Mr. A joins an organization X (India- Madras) on 1st april-2000 An Indian comany. He was deputed in organisation Y from 1st April 2004 in USA- los angeles. He was again deputed to organisation Z in 2006 (India- Ahemdabad). All the above mentioned oganisations are seprate entity but under one group company (Indian MNC) Parent company called XYZ. whether he is eligible for any gratuity?
29th June 2010 From Saudi Arabia, Riyadh
Dear Pawan,
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
1st July 2010 From India, Gurgaon
Dear Member,
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.
Skylark Associates, Gurgaon (Haryana)
(Labour Law Consultants)

18th March 2011 From India, Delhi
dear all please ask me, my gross salary Rs. 25000/-. please suggest how many % of BASIC, HRA, CONVEYANCE & ANY OTHER ALLOWANCES TO BE BIFFUERCATE.
20th March 2014 From India, Surat
Hi All,
The trend in IT companies is to designate a base pay and a flexible benefits plan - which includes a personal pay, coupons, HRA, LTC, ...etc. Retirals are kept seperate (All the above constitute the CTC). My question is what are all considered for gratuity payment
Thanks for your help in advance
best regards
21st March 2014 From India, Bangalore
Hello Sir, I would like to know about Annual Gratuity criteria as for the condition below.
I joined Company X in India on June 2010. I was sent to Japan for training for 1 yrs and 3 months on September 2010. Before send me for training, my company asked me to drop a leave application for certain period of training. The training was held in Company Y (Mother company of X). After completing the training, I joined Company X again on December 2012. Rejoined formalities were done while i joined back. Since then I have been working with Company X.
So in such Situation, am i eligible for Annual Gratuity in June 2015 ??
18th February 2015 From India, Noida

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