Gm (hr)
Asst General Manager-hr
+7 Others

Thread Started by #ashokmela

Hi All,
I would like to know what are the categories or components in the salary structure that will be part of Gratuity Calculation. Let me elaborate my question -
Previous discussions in the mentions that for Gratuity calculation (Basic + DA) is taken in to account for the calculation. I want to know for companies mostly private companies that dont have DA in their salary structure what will be used for the calculation.
10th October 2010 From India, Madras
dear it is basic plus DA and as you have rightly asked ,most of the company does not pat DA tha it will be Basic only for calculation of Gratuity.
10th October 2010 From India, Delhi
What if an employee fails to complete 5 years by few months. Meaning an employee works for 4 years 10 months in a company and had to resign. Can he request for Gratuity ?
11th October 2010 From India, Madras
It is true that most of Pvt company dosenot have the DA as pert of salary in that case we have to calculate the Graduity payable on basic only. Regards, Sunil Kaura.
11th October 2010 From India, Ratnagiri
My understanding is that While calculating gratuity, Basic Salary+ Spl. Alowance+ Dearness Allowance (which is Gross Salary) should be calculated. If DA is not provided by the establishment to its employee then basic DA should be calculated as per Shop & Commercial Establishment Act otherwise as per standing Government Order. Please someone help me on this to go forward.
10th May 2011 From India, Madras
Dear Sir
For calculating gratuity payable under the Payment of Gratuity Act all emoluments earned by the employee while on duty including dearness allowance but excluding bonus, commission house rent allowance overtime wages and other allowances has to be taken into account. If in case the Government had notified minimum wages to the employment in which the employee was employed,then the wages reckoned for calculating gratuity cannot be less than the minimum wages so notified by the Government. The wage rate payable to the employee will be the wage rate payable to him on his last working day with the employer.
10th May 2011 From India, Madras
Dear Sir / Madam,
What is the standard procedure of gratuity calculation. is it applicable special allowance in calculating of gratuity kindly confirm / inform me.
Thanking you,
With regards,
T Nagaraju
31st May 2011 From India, Kochi
Gratuity is calculated as follows
Gratuity = Last basic + D.A/26*15* No of years served.
For Example Basic =3500
No of years of service= 7 yrs
Gratuity =(3500+2000)/26*15*7

Gratuity = 22211.54/-
21st October 2011 From India, Delhi
Dear Sir: v.harikrishnan;1549217]
thank you for your guidance
i just had a small query:
we have considered gratuity as : Basic + DA
since we do not have DA as a part of salary
only conveyance (rs 800 ) and Educational allowance (rs 200)
we have calculated it only on the basis of Basic salary.
can you please guide if this is correct?
also the ex employee has sent a court summons to us.
can you please cite a court order where only basic was used since ther ewas no DA so i can present before court if required.
please guiide-
10th May 2013 From India, Mumbai
Dear Mr.Pranav
For computing the gratuity payable the basic and dearness allowance paid to the employee has to be reckoned. Please read the definition of the term "wages" as defined in the Payment of Gratuity Act. According to this definition only basic and dearness allowance are to be reckoned for calculating the gratuity payable. Please show this definition to the Authority who has summoned you.
With regards
12th May 2013 From India, Madras
Dear Sirs,
I am planning to resign out of my services by 01.06.2013 with three months notice period. I have joined the company by10.10.2008. Will I be eligible for Gratuity since I have not completed five Years.
12th May 2013 From India, Chennai
my service is 20 years i am providing the details & what is my gratuity amount, in my concern there is no DA
BASIC9240,TA2310,HRA3850,SPL INCENTIVE2900;- TOTALLY-18,300/-
18th April 2015 From India, Chennai
If there has been increase salary during the notice period what should be the basic used to calculate the gratuity.
Resignation date: 14-10-2014
Notice period: 2 months
Last working date: 14=12-2014
Did not get the salary slip for Dec 2015 which has increased basic effective 01 Dec 2015 where as the calculation for the gratuity was done with Nov 2015.
The updated basic was reflecting in the FNF only.
So question is the basic salary would be as per the last salary slip od Nov 2014 (less basic) or the FNF (having Dec salary and FnF).
3rd February 2016 From India, Bengaluru
In private limited companies where there is no Dearness Allowance only Basic is used for the purpose of gratuity calculations.
3rd February 2016 From India, Mumbai
Actually there are only three components in the monthly salary package comprising of consolidated Salary, HRA and special allowance
in this circumstance whether special allowance ( in the absence of DA) constitutes Basic salary for the purpose of calculation of gratuity under payment of gratuity act 1972.
24th November 2018 From India, Chennai
@Panchsen Obviously it is only basic that will be considered. This is the reason why Private companies structure their salary in such a way that the basic is very low and special allowance makes up the bulk of the salary.
8th January 2019 From India, Mumbai
my gross salary 23220/month basic 12000/month in the year 2013. my company never paid Bonus in the past 9 years. I'm going to claim my bonus.....
my question: am I eligible for bonus? give me the calculation please.
thank you in advance.
31st January 2019 From India, Hyderabad
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